Ex-Nomura Trader Must Face SEC Fraud Complaint, Court Says

By Jennifer Bennett

An ex-Nomura trader can’t escape an SEC fraud case against him after a federal judge denied his motion to dismiss.

James Im must face a Securities and Exchange Commission fraud suit claiming he misled customers about securities prices, according to a Feb. 12 U.S. District Court for the Southern District of New York opinion.

Im, formerly co-head of commercial mortgage-backed securities trading at Nomura Securities International Inc., lied to customers about securities prices to convince them to pay more, according to the SEC complaint.

Im said his alleged misstatements weren’t material because he was merely haggling to get a good deal and customers made purchase decisions based on their own detailed market analysis, according to the opinion. However, buying price is an important data point, and Im’s purported misstatements affected how much customers were willing to pay, the court held.

Im’s attorney didn’t immediately respond to a request for comment.

The case is SEC v. Im , S.D.N.Y., No. 17-CV-3613 (JPO), 2/12/18 .

To contact the reporter on this story: Jennifer Bennett in Washington at jbennett@bloomberglaw.com

To contact the editor responsible for this story: Seth Stern at sstern@bloomberglaw.com