Two former traders at Nomura who ran the commercial mortgage-backed securities desk were charged by the Securities and Exchange Commission with deliberating lying to customers to inflate the profits of the desk and themselves. The SEC alleges that James Im and Kee Chan each misrepresented price information while acting as intermediaries on trades with Nomura's customers who sought to buy and sell CMBS on the secondary market. Chan agreed to settle the charges, without admitting or denying the allegations, by paying $51,965 in disgorgement plus $11,758 in interest and a $150,000 penalty and agreeing a three-year bar from the securities industry. The case continues against Im.
Copyright © 2017 MarketWatch, Inc.
Continue Reading Below