Japan Advisory Appeals Insider-Trading Rap

Aug 24 2012 | 12:46pm ET

Hedge fund Japan Advisory, all but shut down by Japan's market regulator over alleged insider-trading, will contest the charges and fine against it.

Japan's Financial Services Agency is rarely fought in such cases. But Japan Advisory, led by American Edward Brogan, who left Japan three days after the FSA revoked his firm's license at the end of June, said it will bring the case before the FSA's administrative law judges, a rare appeal.

The FSA found that Japan Advisory short-sold about US$6.8 million of Nippon Sheet Glass shares in August 2010, four days before the company announced it would sell new shares to raise capital. Regulators think that a former employee at Daiwa Securities Group—one of the Nippon Sheet Glass offering's lead bookrunners—passed the tip; Daiwa has apologized.

The FSA has since issued a directive to a dozen banks—a first for the regulator—seeking information about possible leaks to the hedge fund.

An FSA official told the Financial Times that it would "have solid evidence" to present at the hearing.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note