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.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...