Japan Anti-Fraud Cases - Livedoor
Jurisdiction: Japan
Contributors:
Prof. Dr. Katsunori Kai, Professor of Law, Waseda University, Former Public Prosecutor
Mr. Suzuki, Public Prosecutor, Law firm of Nagashima, Ohno and Tsunematsu (NO&T)
Anti-Financial Crime Provisions
A) Fraud (the dishonest inducement of conduct for another’s benefit, by false representation) Criminal Law Article 246: Fraud Article 246-2: Computer Fraud (see http://www.cas.go.jp/jp/seisaku/hourei/data/PC2.pdf)
B) Offences involving fraud, but in specific areas of activity such as the financial markets, taxation, company law or obtaining services (and credit) To evade paying income tax or to receive refund of income tax by false information or other foul play. Income Tax Law: Article 238 Corporation Tax Law: Article 159
Counterfeiting of and making false entry in securities Criminal Law Article 162: Counterfeiting Securities Article 163: Uttering Counterfeit Securities
C) Misusing non-public price sensitive information that has been obtained in a special relationship such as a corporate insider
Financial Instruments Transaction Law (Japanese SOX Act) Article 166 and 167: Insider trading Article 166 prohibits related parties to listed company, knowing “the unpublished significant fact” of listed companies, to buy or sell specified securities before the release of that information. Article 167 prohibits a purchaser by open market, knowing “the unpublished significant fact” of listed companies, to buy or sell specified securities before the release of that information.
The Nippon Broadcasting case (insider trading)
The suspect, the effective Managing Director of MAC Asset Management Corporation (corporate suspect), acquired knowledge via Livedoor executives that Livedoor had decided to carry out an open purchase of Nippon Broadcasting shares in order to
Contributors:
Prof. Dr. Katsunori Kai, Professor of Law, Waseda University, Former Public Prosecutor
Mr. Suzuki, Public Prosecutor, Law firm of Nagashima, Ohno and Tsunematsu (NO&T)
Anti-Financial Crime Provisions
A) Fraud (the dishonest inducement of conduct for another’s benefit, by false representation) Criminal Law Article 246: Fraud Article 246-2: Computer Fraud (see http://www.cas.go.jp/jp/seisaku/hourei/data/PC2.pdf)
B) Offences involving fraud, but in specific areas of activity such as the financial markets, taxation, company law or obtaining services (and credit) To evade paying income tax or to receive refund of income tax by false information or other foul play. Income Tax Law: Article 238 Corporation Tax Law: Article 159
Counterfeiting of and making false entry in securities Criminal Law Article 162: Counterfeiting Securities Article 163: Uttering Counterfeit Securities
C) Misusing non-public price sensitive information that has been obtained in a special relationship such as a corporate insider
Financial Instruments Transaction Law (Japanese SOX Act) Article 166 and 167: Insider trading Article 166 prohibits related parties to listed company, knowing “the unpublished significant fact” of listed companies, to buy or sell specified securities before the release of that information. Article 167 prohibits a purchaser by open market, knowing “the unpublished significant fact” of listed companies, to buy or sell specified securities before the release of that information.
The Nippon Broadcasting case (insider trading)
The suspect, the effective Managing Director of MAC Asset Management Corporation (corporate suspect), acquired knowledge via Livedoor executives that Livedoor had decided to carry out an open purchase of Nippon Broadcasting shares in order to