Ex-Outside Director Arrested for Insider Trading in Sumida Shares

May 29, 2018

Tokyo- Tokyo prosecutors on Tuesday arrested a former outside director of Sumida Corp. for alleged insider trading in shares of the Japanese coil maker.

The Tokyo District Public Prosecutors Office arrested Soichiro Uchida, 64, for a suspected violation of the financial instruments and exchange law. Sumida is listed on the first section of the Tokyo Stock Exchange.

Uchida allegedly purchased Sumida shares worth some 88 million yen between late January and early February last year under the name of a different person, based on undisclosed information about the company's planned dividend increase.

Sumida's stock price rose above 1,200 yen from around 1,100 yen after the company announced the dividend increase on Feb. 6, 2017.

The prosecutors' office and the Securities and Exchange Surveillance Commission believe Uchida gained a large amount of profits by selling Sumida shares later.

After serving as president of an office equipment parts maker and other posts, Uchida became outside director at Sumida in March 2014. He resigned from the post in December last year for personal reasons. Jiji Press