Japan has long been known as a market defined by an insider business culture with a low presence of independent directors and minimal accountability to shareholders.
In July 2010, the Company received notice that, pursuant to an April 21, 2010 order, the SEC is conducting a formal, non-public investigation into possible violations of proscriptions on insider trading under the federal securities laws by certain current and former officers and directors.
There is reportedly also preliminary evidence that directors of top brokerages illegally traded BW Resources shares for their own personal accounts, on insider knowledge that Macau gambling king Stanley Ho was on his way.