The SEC charged two former traders for Nomura Securities International Inc. ("Nomura") with securities fraud. According to two SEC Complaints, James Im and Kee Chan allegedly misrepresented purchase and sale prices to customers while acting as intermediaries on trades in commercial mortgage-backed securities ("CMBS"). The former traders reportedly fabricated negotiation processes, altered internal emails, and made other material misrepresentations to customers in order to induce them to purchase or sell CMBS at prices that favored the Nomura traders and inflated profits. The traders were charged with violating Securities Act Section 17(a), and Exchange Act Section 10(b) and Rule 10b-5.
According to the related SEC press release, Mr. Chan agreed to settle all charges by paying over $200,000 in interest, disgorgement and penalties, and is barred from working in the securities industry for at least three years.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.