Tokyo — Yuta Cho, a former employee of Nomura Securities, has been arrested by Tokyo police on suspicion of defrauding an elderly client of ¥10 million ($65,000) through a fake investment offer.
Cho, 30, from Yokohama, admitted to the fraud, stating that he exploited the trusted name of the prominent Japanese brokerage firm to deceive the victim. The incident, which occurred in January 2024, involved Cho persuading a woman in her 70s, a resident of Nakano Ward in Tokyo, to transfer ¥10 million to his bank account. He allegedly lied to the woman, claiming that Nomura Securities employees had the ability to make in-house installment deposits and that he could guarantee her investment with a 2% annual interest rate.
The victim trusted Cho because of his solid performance in handling investments, which led her to believe his false claims. The scam went undetected until July 2024, when the victim spoke with a new Nomura employee who had taken over Cho’s duties after his transfer to another group affiliate. Upon learning the truth, the victim reported the incident to the police.
Cho, who worked in the sales department for wealthy clients, began working with the woman in September 2022. It is suspected that he may have used a similar scheme to defraud other clients out of tens of millions of yen.
Cho resigned voluntarily from his position at Nomura Securities in June 2024, fearing that his fraudulent actions would soon be discovered. Investigations revealed that Cho had accumulated substantial gambling debts, and it is believed that he used the stolen funds to repay those debts and continue gambling.
Nomura Securities issued an apology for the misconduct, emphasizing that the company would continue to cooperate fully with the police investigation. This arrest comes after a separate case in November 2024, where another former Nomura employee was indicted for allegedly robbing and attempting to kill an elderly couple in Hiroshima.
In light of recent scandals, Nomura Securities President Kentaro Okuda, along with other executives, announced that they would voluntarily return part of their remuneration for three months, taking responsibility for the company’s recent irregularities.
