The case underscores the legal risks for foreign professionals working in Japan. The country’s justice system has faced criticism for its conviction rate of more than 99%, suggesting to organizations including Human Rights Watch that trials are practically forgone conclusions.
Still, criminal proceedings against foreign business executives are relatively rare in Japan. The most high-profile case in recent years was against Carlos Ghosn, the former Nissan Motor Co. chairman, who was accused of financial misconduct and fled the country before he was tried.
The former SMBC Nikko executives are expected to appear at the court on Tuesday morning. Hill and Avakiants have been out on bail but unable to travel abroad without the court’s permission.
It has been more than two and a half years since prosecutors brought charges against the individuals and the firm. Ex-manager Teruya Sugino received a suspended prison sentence in 2023 after admitting to the accusations. SMBC Nikko itself pleaded guilty.
Prosecutors in March asked the Tokyo court to sentence Hill to two and a half years in jail. They also sought two years each for Avakiants and former general manager Shinichiro Okazaki. Other penalties pursued include four years’ imprisonment for former general manager Makoto Yamada and two and a half years for ex-deputy president Toshihiro Sato.