Japan Seeks Record Fine Against Hedge Fund

Aug 1 2013 | 10:59am ET

Japanese regulators have accused hedge fund Juggernaut Capital Management of market manipulation.

The Securities and Exchange Surveillance Commission is seeking a ¥431 million (US$4.4 million) fine against the Singapore-based hedge fund. If approved by the Japanese Financial Services Agency, it would be the largest-ever fine it has imposed on a foreign firm.

According to the SESC, Juggernaut inflated the stock price of real-estate developer Rise Inc. in March and April of last year, placing large buy orders and trading heaving near the close of market sessions. The hedge fund earned about ¥200 million from the scheme, which ran for 26 trading days.

Neither Juggernaut nor founder Yashwant Bajaj have commented on the allegations.

The fine against Juggernaut would be the third-ever against a foreign firm for illicit trading by the SESC, after First New York Securities and Tiger Asia Partners last year.

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