TOKYO (TR) – Tokyo Metropolitan Police last week announced the arrest of a former executive of a branch of SMBC Nikko Securities Inc. in Musashino City who is suspected of defrauding dozens of customers over a more than seven-year period, reports the Nikkei Shimbun (Dec. 9).
Thus far, police have accused Takeshi Ogawa, the former head of the general affairs section of the Kichijoji branch of the firm, sent about 24 million yen in proceeds from the unauthorized sale of financial products belonging to 12 customers to a bank account in the name of an acquaintance between January, 2012 and August of the following year.
Ogawa, 59, admits to the allegations, police said.
According to police, Ogawa used similar means to swindle a total of 70 customers out of 130 million yen between January, 2010 and August, 2017. Over a portion of that period, the suspect was assigned to another branch.
Police said Ogawa used the funds to cover living expenses and repay debt. He also used the money to compensate for other swindled customers, a practice resembling a pyramid scheme.
According to SMBC Nikko Securities, most of the victims have been compensated with the entire process expected to finish soon.
“It is inexcusable to cause such a great concern and inconvenience,” the firm said in offering an apology for the incident. “We will [implement measures] companywide to prevent a recurrence.”