Nomura Holdings Faces Criminal Charges Against Former Employee

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Nov 20, 2024
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Nomura Holdings, Japan's largest brokerage firm, announced that the Hiroshima District Prosecutor's Office has formally charged a former employee of its subsidiary with multiple criminal offenses. The ex-employee faces charges including robbery, attempted murder, and arson. In response, Nomura is implementing stringent measures to enhance its internal systems, aiming to reassure clients and regain their trust.

Earlier this month, Nomura outlined its response measures following the exposure of the case. These include stricter regulations on employee visits to clients and requiring prior approval for in-home consultation services. The accused, a 29-year-old man, allegedly drugged an elderly client and their spouse, stole approximately 26 million yen (170,000 USD) from their home, and set it on fire. This incident occurred in July while the suspect was employed at Nomura. Fortunately, the couple, both in their 80s, managed to escape unharmed.

The case has sent shockwaves through Japan's securities industry. Earlier reports indicated that the country's financial regulatory bodies have instructed Nomura to investigate the crime's causes and implement measures to prevent similar incidents in the future. On Wednesday, Nomura issued another apology to its clients, expressing regret for the inconvenience caused by the incident.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.