Nomura's New York-based arm will repay $25 million to its customers for allegations that it failed to adequately supervise traders that made false claims to clients while pushing mortgage securities.
The Securities and Exchange Commissions (SEC) alleges that the former Nomura traders had lied to clients about the price, profits and even ownership—the firm had owned the bonds, in some cases, while traders pretended to act for a third party—of residential and commercial mortgage-backed securities (CMBS).
Nomura is expected to repay $24.9 million to its clients and $1.5 million in penalties to the SEC, a fine described as reflective of its «substantial cooperation».
Former managing director Ross Shapiro, senior traders Michael Gramins and Tyler Peters, and former co-heads of CMBS, James Im and Kee Chan, were named and previously sued by the regulator. A 2017 trial only found Gramins guilty and he is currently appealing the decision.
