Yoshiaki Murakami's conviction for insider trading has sent shockwaves through the financial world. He was found guilty of using inside information to buy and sell stocks.
Murakami's case highlights the risks of insider trading, which can have severe consequences for individuals and the market as a whole.
Who is Yoshiaki Murakami
Yoshiaki Murakami was born in Osaka.
He graduated from the University of Tokyo.
Murakami joined the Ministry of International Trade and Industry after graduating from university.
He aimed to establish his own consulting firm, the "Murakami Fund", to become a "player" himself before the age of 40.
Murakami's style of investment involves obtaining shares in a target corporation and making them focus on profitable business domains.
He gained attention as a "vocal shareholder" through making shareholder proposals to maximize enterprise values.
Murakami's typical investment approach includes making open critiques at shareholder meetings towards management that take shareholders lightly.
He invested in companies like Tokyo Style, Nippon Broadcasting System, and Hanshin Electric Railway.
Six years after the establishment of the Fund, Murakami was arrested for accusations of insider trading of shares in Nippon Broadcasting Systems.
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Japanese Fund Manager Jailed for Insider Trading
Yoshiaki Murakami, a Japanese fund manager, was sentenced to two years in prison for insider trading. He was also fined a record ¥1.2bn (£4.8m).
Murakami was accused of buying shares in Nippon Broadcasting System (NBS) after learning that Livedoor was about to make a bid for the broadcaster. This was a major breach of Japanese laws, which ban anyone with prior knowledge of a purchase of a stake of 5% or more from buying shares in the firm before the purchase is made public.
The judge, Kuniko Koma, was not impressed with Murakami's defense, saying "This was a crime committed by a professional, the money involved is an almost unparalleled amount and the losses cannot be recouped." Murakami's lawyers have since appealed the sentence.
Murakami's fund, MAC Asset Management, bought ¥10bn of NBS shares and pocketed a ¥3bn profit during Livedoor's unsuccessful bid.
Curious to learn more? Check out: NBS Television (Uganda)
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