Tokyo prosecutors have arrested three people, including the president of Tokyo General Corp., a failed commodity futures brokerage house, on suspicion of faking its financial statements and padding the deposit balance by more than 20 billion yen.
The three, including two former executives of the company, are accused of violating a law on commodity exchange for such actions as allegedly combining some customer assets with the company's and submitting false reports on asset management.
Commodity futures brokerages are required by law to manage customer assets and the firm's assets separately.