Former Deutsche Bank salesman Shigeru Echigo admitted to bribery charges in Tokyo and said he acted on instructions from his managers, as authorities push brokerages to be more judicious in entertaining clients.
Bloomberg reports that at the start of his trial in the Tokyo District Court Tuesday, Echigo accepted prosecutors’ argument that he bribed a pension fund executive to buy investment products. Echigo, 37, spent about $8,800 entertaining the client on 15 occasions from April to September 2012, the prosecutors said.
The defendant said he didn’t act alone and the conduct at the bank’s Japan brokerage unit was institutional. Former Mitsui employee Yutaka Tsurisawa was convicted in the same court last month for accepting benefits from Echigo, and Deutsche Securities cut the pay of several top Japan officials after the firm was censured by regulators in December.
The charges relate to meals and golf outings with Tsurisawa that constituted a breach of Japanese law because the money his pension oversaw included public funds, effectively making him a civil servant. The investigations into Echigo and Tsurisawa may signal that Japanese banks’ and brokers’ practice of entertaining clients to build relationships will only be tolerated in relation to private money.
To access the complete Bloomberg article hit the link below: