Norinchukin Securities, from November 2000 to December 2002, sold to customers securities which were issued by those persons who had borrowings from its parent juridical person and underwritten by itself, knowing but without telling the customers an extremely high possibility that the net proceeds derived from selling the securities would be used by the issuers of the securities for repayment of such borrowings.
The conduct above was found to have violated a Ministerial Ordinance, Article 45(3) of the Security and Exchange Law.