Li Yu, a former employee of Nomura Securities Co., and his friend Su Chunguang, both Chinese nationals, pleaded guilty at the Tokyo District Court on Tuesday to charges of insider stock trading. The Japan Times reports that Li and Su were charged with violating the Financial Instruments and Exchange Law, which prohibits trading in stocks based on insider information. Although illegal, insider trading has not been aggressively enforced in Japan.
The prosecution alleges that Li obtained insider information while working for Nomura’s corporate information division, which handles corporate mergers and acquisitions. Prosecutors allege that Su traded shares after receiving information obtained by Li, and that the two split the costs and profits (about ¥13.7 million in profits, or approximately US$140,000) linked to the stock trading.