Toshihide Iguchi
Encyclopedia
is a former Japan
ese government bond trader at Daiwa Bank responsible for $1.1 billion in losses involving 30,000 unauthorized trades over a period of 11 years beginning in 1984.
, Japan
, Iguchi came to the U.S. at age 19 to enroll in Southwest Missouri State College (now called Missouri State University
) where he majored in psychology. After graduating, he was hired at Daiwa's New York branch to work in the securities custody department. In 1980, he was promoted to the role of a portfolio manager.
In 1983, he lost $70,000 in trading and concealed this loss to protect his reputation and job. He continued trading to recoup the loss; however, the loss snowballed. In 1988, he was joined by two other traders who also concealed their losses. Iguchi continued to conceal the losses away from internal auditors and state and federal regulators.
In September 1995, fearing the damage his losses may cause the bank if inadvertently discovered, Iguchi wrote a confession letter to the president of Daiwa Bank, Japan detailing what had transpired. By this time, the loss was in excess of $1 billion. According to Iguchi, concealing this loss to protect his reputation and job was the impetus for his subsequent unauthorized trading.
While Daiwa had instructed Iguchi to continue concealing the losses, it turned his confession letter over to the federal authorities and Iguchi was arrested at his home.
Iguchi was incarcerated in a solitary cell at the Metropolitan Correctional Center, New York City
for 15 months, befriending George Harp (a founding member of the Aryan Brotherhood
), Greg Scarpa (a Mafia
hitman), Abu Marzook (a Hamas
leader) and Latin Kings members. During his incarceration, Iguchi penned a memoir of his life in America in Japanese and while he was still in the cell, the book became a #1 bestseller in Japan.
In 1997, he was sentenced to four years in prison and sent to Allenwood Prison Camp (Federal Correctional Institute, Allenwood
) to serve the remainder of his term. There he wrote another book about George Harp, the only surviving founding-member of the Aryan Brotherhood, titled King of the Prison, which was published in Japan.
In March 1999, he was released from Allenwood FPC.
In August 2000, Iguchi moved to Atlanta, Georgia to begin his new life as a writer.
In April 2001, Iguchi published The Dollar Conspiracy from Bungeishunju
.
In May 2002, Iguchi authored another book, titled My Billion Dollar Education, an English version of his best-selling book, The Confession.
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese government bond trader at Daiwa Bank responsible for $1.1 billion in losses involving 30,000 unauthorized trades over a period of 11 years beginning in 1984.
Biography
Born in KobeKobe
, pronounced , is the fifth-largest city in Japan and is the capital city of Hyōgo Prefecture on the southern side of the main island of Honshū, approximately west of Osaka...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Iguchi came to the U.S. at age 19 to enroll in Southwest Missouri State College (now called Missouri State University
Missouri State University
Missouri State University is a public university located in Springfield, Missouri, United States and founded in 1905. It is the state's second largest university, with an official enrollment of 20,802 in fall 2011...
) where he majored in psychology. After graduating, he was hired at Daiwa's New York branch to work in the securities custody department. In 1980, he was promoted to the role of a portfolio manager.
In 1983, he lost $70,000 in trading and concealed this loss to protect his reputation and job. He continued trading to recoup the loss; however, the loss snowballed. In 1988, he was joined by two other traders who also concealed their losses. Iguchi continued to conceal the losses away from internal auditors and state and federal regulators.
In September 1995, fearing the damage his losses may cause the bank if inadvertently discovered, Iguchi wrote a confession letter to the president of Daiwa Bank, Japan detailing what had transpired. By this time, the loss was in excess of $1 billion. According to Iguchi, concealing this loss to protect his reputation and job was the impetus for his subsequent unauthorized trading.
While Daiwa had instructed Iguchi to continue concealing the losses, it turned his confession letter over to the federal authorities and Iguchi was arrested at his home.
Iguchi was incarcerated in a solitary cell at the Metropolitan Correctional Center, New York City
Metropolitan Correctional Center, New York City
The Metropolitan Correctional Center, New York City is a Federal Bureau of Prisons remand center in downtown Manhattan in New York City, located on Park Row behind the Thurgood Marshall United States Courthouse at Foley Square....
for 15 months, befriending George Harp (a founding member of the Aryan Brotherhood
Aryan Brotherhood
The Aryan Brotherhood, also known as The Brand, the AB, or the One-Two, is a white supremacist prison gang and organized crime syndicate in the United States with about 20,000 members in and out of prison...
), Greg Scarpa (a Mafia
Mafia
The Mafia is a criminal syndicate that emerged in the mid-nineteenth century in Sicily, Italy. It is a loose association of criminal groups that share a common organizational structure and code of conduct, and whose common enterprise is protection racketeering...
hitman), Abu Marzook (a Hamas
Hamas
Hamas is the Palestinian Sunni Islamic or Islamist political party that governs the Gaza Strip. Hamas also has a military wing, the Izz ad-Din al-Qassam Brigades...
leader) and Latin Kings members. During his incarceration, Iguchi penned a memoir of his life in America in Japanese and while he was still in the cell, the book became a #1 bestseller in Japan.
In 1997, he was sentenced to four years in prison and sent to Allenwood Prison Camp (Federal Correctional Institute, Allenwood
Federal Correctional Institute, Allenwood
Allenwood Federal Correctional Complex is a United States Federal Bureau of Prisons facility located on U.S. Route 15 in Gregg Township, Union County, Pennsylvania. The prison, at the foothills of the Allegheny Mountains, is on U.S. Route 15, north of Allenwood, south of Williamsport, and north...
) to serve the remainder of his term. There he wrote another book about George Harp, the only surviving founding-member of the Aryan Brotherhood, titled King of the Prison, which was published in Japan.
In March 1999, he was released from Allenwood FPC.
In August 2000, Iguchi moved to Atlanta, Georgia to begin his new life as a writer.
In April 2001, Iguchi published The Dollar Conspiracy from Bungeishunju
Bungeishunju
, established in 1923, is a Japanese publishing company known for its leading monthly magazine Bungeishunjū. It also grants the annual Akutagawa Prize, one of the most prestigious literary awards in Japan, as well as the annual Naoki Prize for popular novelists. It also grants the annual...
.
In May 2002, Iguchi authored another book, titled My Billion Dollar Education, an English version of his best-selling book, The Confession.
External links
- An Unusual Path to Big Time Trading - NY Times
- Daiwa Case Study - Bancware ERisk Case Study
- "I didn't set out to rob a bank" - Time Interview Feb. 1997