Nomura charged with breaking law

October 01, 1991|By New York Times News Service

TOKYO -- Nomura Securities Co., the world's largest brokerage house, was charged yesterday with violating Japanese law by manipulating customers into a flurry of buying that sent the price of a major stock soaring briefly two years ago.

Finance Minister Ryutaro Hashimoto told a parliamentary committee that the firm ran a scheme that left scores of customers with heavy losses but benefited a select few -- including one of Japan's top organized-crime bosses -- after the stock collapsed.

It was the first time in this country's recent financial scandals that a brokerage house has been charged formally with breaking the law.

The Justice Ministry also announced a separate criminal probe of Nomura and its former president.

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