The Securities and Exchange Commission charged two former head traders of the Commercial Mortgage-Backed Securities (“CMBS”) desk of Nomura Securities International Inc. with purposely lying to their customers to increase their desks’ profits and their own bonuses. One of the two defendants, Kee Chan, simultaneously agreed to settle his action by paying a fine of US $150,000, disgorging profits and agreeing to be barred from the securities industry with the right to reapply after three years. The second defendant, James Im, determined to contest the SEC’s charged. According to the Commission, from 2010 through 2014, Mr. Chan and Mr. Im, on behalf of Nomura, often bought CMBS from one customer and sold to another. During this time, said the Commission, the defendants intentionally misled and lied to customers regarding the prices Nomura had purchased or sold the CMBS; the bids and offers Nomura made or received on the CMBS; the compensation Nomura would receive for arranging the CMBS transactions; and who owned the security. The SEC said that the defendants often pretended they were negotiating with a third party at a time that Nomura had acquired the security. The defendants allegedly “fabricated entire negotiations and conversations with nonexistent third parties in order to embellish [their] lies,” alleged the SEC. Mr. Chan’s settlement is subject to court approval, while Mr. Im’s case remains pending in a federal court in New York.