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SEC says ex-Nomura trading chief lied about bond prices
May 15, 2017 / 2:35 PM / 5 months ago

SEC says ex-Nomura trading chief lied about bond prices

NEW YORK, May 15 (Reuters) - A former co-head of the commercial mortgage-backed securities trading desk at Nomura Holdings Inc was charged by a U.S. regulator on Monday with fraud for lying to customers about bond prices.

The U.S. Securities and Exchange Commission said Kee Chan, 46, of Manhasset, New York, on numerous occasions from 2010 to March 2012 “deliberately misled and lied to customers” about bond prices.

This resulted in hundreds of thousands of dollars of ill-gotten profit, the regulator said, and boosted the pay of Chan, who had been a Nomura managing director. The SEC filed its complaint in Manhattan federal court.

Chan could not immediately be reached for comment. It is unclear whether Chan has hired a lawyer. Nomura declined to comment.

According to brokerage industry records, Chan worked for Nomura from August 2009 to June 2012.

He later worked for about 3-1/2 years at UBS Group AG before being terminated in February 2016, after failing to disclose in a timely way that he was being investigated by the U.S. Department of Justice over his trading at Nomura, the records show.

Last week, former Nomura traders Michael Gramins, Tyler Peters and Ross Shapiro went on trial in Hartford, Connecticut. Federal prosecutors have accused them of misrepresenting bond prices to customers. (Reporting by Jonathan Stempel in New York; Editing by Bernadette Baum)

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