SMBC Nikko Found Guilty of Market Rigging in Trading Scandal (1)

SMBC Nikko Securities Inc. and a former executive were found guilty of market manipulation, in a scandal that has rocked the brokerage arm of the country’s second-largest banking group and led to record losses.

The Tokyo District Court ruled on Monday that the firm must pay a fine of 700 million yen ($5.3 million) and forfeit 4.47 billion yen in earnings. Ex-manager Teruya Sugino was sentenced to one year and six months imprisonment, suspended for three years. Both had admitted to propping up the prices of shares before they were sold in what’s known as a block offer, in ...