NEW YORK May 15 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
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
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
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