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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Murakami indicted for insider trading

The Tokyo Prosecutor's Office on June 23 indicted Murakami Yoshiaki, former investment fund manager, on charges of insider trading that violates the Securities and Exchange Law. Murakami's investment consulting firm, MAC Asset Management, was also charged.

Knowing that Livedoor Co. planned to buy up the shares of Nippon Broadcasting System (NBS) Inc., Murakami bought a number of NBS shares. Then he sold them off at their peak price when boosted by Livedoor's heavy buying.

Murakami had come to know Livedoor's plan on November 8 and purchased 1.93 million NBS shares from the next day until January 26, 2005 for a total of 10 billion yen.

Through this trade, Murakami reportedly made a profit of nearly 3 billion yen, the largest amount of profit ever made through insider trading in Japan.

Not only Murakami, but also Chairman and CEO of the lease and financial firm Orix Corporation Miyauchi Yoshihiko, who promoted the Murakami fund, as well as Bank of Japan Governor Fukui Toshihiko, who acted as the fund's walking billboard, are to blame for riding the gravy train.

Orix provided 45 percent of the capital of MAC Asset Management, and Orix invested 20 billion yen to the fund. Orix reportedly made several billion yen every year in investment returns.

Japanese Communist Party House of Representatives member Sasaki Kensho on June 22 revealed that some of investors who wished to contribute to the Murakami fund were required to enter into a contract with Orix. This scheme enabled Orix to automatically receive a 2 percent commission from invested funds.

BOJ Governor Fukui invested 10 million yen to the fund and acted as an advisory board member of the MAC Asset Management. Combining investment returns and dividends, he made nearly 15 million yen.

Despite Orix's announcement that the firm has nothing to do with the Murakami case, Orix earned part of the unlawful profits Murakami made through his insider trading. Orix and BOJ Governor Fukui cannot evade their complicity in this case.
- Akahata, June 24, 2006