Case Resolved Involving Unauthorized Trading and Related Conduct That Led to Over $200 Million Loss

Defendant Fusamae was a senior finance employee and controller at Molex Japan Co., Ltd., the Japanese subsidiary of the U.S.-based public company Molex Inc. He engaged in unauthorized equity trading in the company’s brokerage accounts that resulted in losses of more than $110 million, which he concealed by taking out unauthorized and undisclosed company loans with Japanese banks and brokerage firms, using the loan proceeds to replenish account balances and engage in additional trading Molex ultimately recognized a $201.9 million cumulative net loss in restated financials as a result of this conduct, and was ordered to cease-and-desist its internal control failures. Defendant agreed to a permanent injunction and industry bar. Claims for monetary relief against him were voluntarily dismissed due to his intervening death.