Jun. 3, 2026
Dear Chairman Atkins and the Commission, I strongly support the SEC's Draft Strategic Plan, particularly Goal 2, which emphasizes strictly policing established violations such as fraud and manipulation. To achieve this goal and protect U.S. investors, the Commission must explicitly address a critical loophole currently being exploited by Foreign Private Issuers (FPIs): Cross-Border "Justice Laundering." Certain foreign corporations are accessing massive U.S. capital (e.g., via Rule 144A bond issuances) while simultaneously weaponizing their local judicial systems to silence whistleblowers and conceal material internal control failures. A concrete, ongoing example of this systemic threat is SOMPO Holdings (Ticker: SMPNY). (Detailed forensic evidence has already been submitted to the SEC Enforcement Division via the TCR system: Submission #17792-973-692-064). The FPI executed a calculated deception through the following mechanisms, exhibiting a pathological disregard for economic rationality to protect a massive transaction: 1. The $3.5 Billion Deception (Scienter): Despite receiving explicit, undeniable evidence of systemic document forgery and internal control collapse from a whistleblowing shareholder, SOMPO intentionally omitted this material risk from their Form 6-K filings. This deliberate concealment was executed solely to safely force through their $3.5 billion acquisition of Aspen Insurance Holdings and a subsequent $1.3 billion Rule 144A bond issuance. 2. The "Dummy Plaintiff" SLAPP Mechanism & Extreme Conflict of Interest: To cover up the initial fraud (a forged repair estimate of 168,432 JPY vs. the authentic 42,900 JPY), SOMPO deployed a team of four corporate attorneys to pursue a retaliatory SLAPP suit. Most egregiously, they forced their own customer (the insured) to act as a "dummy plaintiff," deliberately inflicting a net financial loss of over 110,000 JPY on their own client solely to silence the whistleblower. 3. Permanent Judicial Fixation and Intentional Obstruction (Rule 21F-17): Following the failed SLAPP suit, SOMPO initiated a mediation (Case No. 2026 (Reiwa 8) (No) No. 10 at the Nara Summary Court) intended as a gag order. By doing so, they inadvertently committed their fraudulent intent to the permanent public record of the Japanese judiciary. Furthermore, the petition for this mediation bears the direct signature of SOMPO's CEO, Koji Ishikawa. This confirms a top-down executive mandate to obstruct regulatory reporting to the SEC, a blatant violation of Rule 21F-17. 4. Multi-Layered Regulatory Failures: This case highlights severe violations across multiple SEC jurisdictions: Violations of SOX 302/404: False personal certifications by the CEO regarding the effectiveness of internal controls while actively orchestrating a cover-up. Gatekeeper Failure under Section 10A: The explicit complicity of external auditors, EY ShinNihon, who ignored documented fraud and abandoned their statutory reporting duties. FCPA Books & Records Violations: The systematic falsification of official corporate records (inflating claims via forged estimates), which contaminated the baseline of their financial reporting. This is not a mere local dispute; it is a meticulously calculated fraudulent scheme designed to deceive global investors by abusing local courts. If the SEC fails to penalize this specific methodology, you will be granting a "free pass" to every bad actor worldwide. I urge the policy, enforcement, and accounting divisions to coordinate immediately on this specific threat (TCR #17792-973-692-064) and ensure that your Strategic Plan explicitly closes the door on Cross-Border Justice Laundering. Sincerely, [A Concerned Investor]