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Investment fund manager arrested over insider trading

The Tokyo District Public Prosecutors Office on June 5 arrested investment fund manager Murakami Yoshiaki on suspicion of conducting insider trading in violation of the Securities and Exchange Law.

Knowing information that Livedoor Co. was planning a buyout of Nippon Broadcasting System Inc., Murakami allegedly made purchases of shares of NBS before Livedoor made public its intention.

The Murakami case followed another case involving Livedoor, showing that the government's financial deregulation policy had brought about such money-game "alchemists."

Japanese Communist Party Secretariat Head Ichida Tadayoshi at a press conference on the same day commented, "This is a serious crime that deceives ordinary shareholders and undermines fairness in the stock market. We demand a thorough investigation to uncover the whole picture."

Ichida pointed out that the Financial Services Agency and the Securities and Exchange Surveillance Commission have long passed over Murakami's misdeeds in which he jacked up share prices and sold shares at the highest price in order to make huge profits.

Ichida stated, "This incident shows a dysfunction of the Japanese financial administration. It is necessary to drastically review the deregulation-cure-all policy that has brought about the 'free' financial market highly convenient for money game players by unruly relaxing of regulations in the security market and giving tax breaks for securities."

Ichida criticized the Koizumi Cabinet for encouraging such money games under the slogan "shift from savings to investment."

Pointing out that large corporations and business people have funded Murakami, Ichida stressed the need to reveal the political and economic background that enabled Murakami to act illegally.
- Akahata June 6, 2006