Japan’s Securities and Exchange Surveillance Commission has questioned a former executive of power producer Eneserve Corp. and searched his home in connection with suspected insider trading, according to the Japan Times. The regulator is reportedly planning to file a complaint against the former director for possible insider trading in Eneserve securities that resulted in a ¥10 million profit (approximately US$100,000). Eneserve is listed on the Tokyo Stock Exchange.
The former director, who joined Eneserve in 2000 and retired from the post after the accusations were made, has owned up to the allegations, the Japan Times reports. While in charge of public relations for investors at the company, he allegedly sold short a large amount of shares in Eneserve in May 2006, correctly anticipating that the shares would fall after an imminent profit drop announcement.
