A former American executive of a major Japanese brokerage, who is facing criminal charges in Japan, has pleaded for the court to declare him innocent, emphasizing that the trial's outcome will impact Japan's reputation as an international financial center.
Trevor Hill, the ex-head of equity at SMBC Nikko Securities Inc., voiced his concerns in the Tokyo District Court, stating that the prosecutors’ unfounded claims have raised apprehensions about the legal risks of working in Japan. Hill's defense team made these arguments during the closing statements, following the prosecutors' request for lengthy prison terms for Hill and other implicated individuals due to alleged misconduct.
Hill, arrested in 2022 for alleged share price manipulation along with former colleagues, and most co-accused have maintained their innocence. He highlighted that a verdict of innocence would promote Japan as an attractive destination for top global talent, fostering its growth as a significant hub for international business success. The court is set to announce its ruling on July 22.
The case has underscored the challenges faced by foreign professionals working in Japan, with criticism directed at the country's justice system for its exceedingly high conviction rate of over 99%, leading to perceptions that trials tend to result in predetermined outcomes.
Hill's case is significant as he was among a small number of foreign executives to reach top management positions in a major Japanese brokerage. Previously serving as UBS's equities chief, he joined SMBC Nikko in 2014.
In a separate incident in 2023, SMBC Nikko and former executive Teruya Sugino were found guilty of market manipulation, with the firm ordered to forfeit earnings totaling ¥4.47 billion ($29.6 million) and pay a ¥700 million fine. Sugino received a suspended prison sentence of one year and six months for unlawfully inflating share prices before a block offer, violating Japan’s financial laws.
Hill criticized the prosecutors for targeting what he described as legitimate activities, causing hesitation among traders who fear legal risks. He noted that global institutional traders are reluctant to invest in Japanese stocks until prices rise, viewing the current legal climate as a deterrent.