Ex-SMBC Nikko managers found guilty in market manipulation case

Ex-SMBC Nikko managers found guilty in market manipulation case

Five former executives at Japanese brokerage SMBC Nikko Securities Inc. have been found guilty in a long-running market manipulation case by the Tokyo District Court [1]. The verdicts, delivered on Tuesday, mark the culmination of a scandal that shook Japan’s financial industry. The defendants, including Trevor Hill and Alexandre Avakiants, were charged with attempting to support stock prices ahead of block trades.

The Tokyo District Court sentenced Hill to two and a half years in jail, Avakiants to two years, and former general manager Shinichiro Okazaki to two years. Ex-deputy president Toshihiro Sato received a two and a half year sentence, while former general manager Makoto Yamada was given a four-year prison term. The court also sentenced ex-manager Teruya Sugino to a suspended prison sentence after he admitted to the accusations earlier [1].

The case highlights the legal risks for foreign professionals working in Japan. The conviction rate in Japan's justice system is over 99%, which has been criticized by organizations like Human Rights Watch for potentially biased trials [1]. The case against the SMBC Nikko executives is one of the few involving foreign business executives in Japan.

The scandal, which surfaced in early 2022, resulted in regulatory penalties and financial losses for SMBC Nikko. The subsidiary of Sumitomo Mitsui Financial Group Inc. posted losses and cut costs, while clients took their business elsewhere. The firm’s top executives also took pay reductions to shoulder responsibility [1].

SMBC Nikko resumed block offers in April 2025 after renaming them retail offers and introducing tighter internal monitoring of transactions [1]. The case underscores the importance of regulatory compliance and ethical practices in the financial sector.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-21/ex-smbc-nikko-managers-face-verdicts-in-market-manipulation-case