Japan mulls action against Credit Lyonnais
TOKYO: Japanese regulators recommended disciplinary action on Friday against
the Tokyo branch of Credit Lyonnais Securities Europe-Swiss AG, accusing the
company of violations including inflating a customer's balance sheet.
The Securities and Exchange Surveillance Commission submitted the
recommendation to Japan's Financial Reconstruction Commission, alleging that
the brokerage firm violated the law in three separate incidents.
Officials at the company's office in Tokyo could not be reached after office
hours on Friday for comment on the decision. In its ruling, the SESC said
that Credit Lyonnais Securities illegally provided around 640,000 yen
($6,040) in property gains on February 1 to artificially boost a customer's
profits.
The commission also said the brokerage firm solicited a customer in January
1998 for a securities index futures transaction, promising profits that, in
the event of an actual loss, would come from the brokerage firm's own
accounts. The third incident, in September 1998, occurred when Credit
Lyonnais deliberately falsified reports sent to a customer over a stock
options transaction, the SESC said. (AP)
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