Corp-Ethics.com - Report: Livedoor's Horie pleads innocence

Company	Livedoor [Company Info]
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Date	Issue	Title
4th Sep 2006	Fraud Investigation	Livedoor's Horie pleads innocence

Report

Takafumi Horie, former boss of Japanese internet firm Livedoor who quit amid a corporate scandal, has pleaded not guilty to fraud charges in court.
Mr Horie denied violating securities laws by falsifying profit figures to boost Livedoor's share price.

The 33-year old faces a maximum of five years in jail if found guilty.

Mr Horie's fall from grace sent shockwaves through the Japanese stock market, leading to a sharp fall in share prices earlier this year.

The case against Mr Horie has attracted widespread public interest because his brash, aggressive manner was at odds with Japan's traditionally conservative business culture. Mr Horie and other Livedoor executives were forced to resign in January after being accused of conspiring to massage Livedoor's profits to give the impression that the firm was continuing to grow strongly.

Four colleagues including the firm's chief financial officer have admitted their guilt but Mr Horie, whose case has taken much longer to come to court, has denied all charges.

In his first public appearance since being given bail in April, Mr Horie told a Tokyo court that he was "offended" by the allegations.

"I regret this indictment," he said. "I have never done such things and I didn't order such things either."

Mr Horie is accused of instructing his subordinates to artificially raise profit figures to maintain the internet's firm growth profile.

Prosecutors also claim Mr Horie used unscrupulous methods to buy other companies and to hide Livedoor's growing losses.

The case will hinge on whether prosecutors can prove that Mr Horie was aware of wrongdoing and conspired with other executives.

"The arguments of the prosecutors collapse on their own," defence lawyer Yasuyuki Takai told the court.

"The prosecutors are portraying acts that are totally not criminal as though they are great crimes."

Source: BBC. www.bbc.co.uk

Other Reports on Livedoor
Date	Issue	Company	Report
23rd Mar 2007	Fraud Investigation	Livedoor	Japanese tycoon and his staff guilty of fraud
23rd Jun 2006	Fraud Investigation	Livedoor	Top Japanese fund manager charged
5th Jun 2006	Fraud Investigation	Livedoor	Fund chief is arrested in continuing Livedoor scandal
25th May 2006	Fraud Investigation	Livedoor	Livedoor executives go on trial
16th Mar 2006	Other Issue	Livedoor	Livedoor shareholder to sue firm
13th Mar 2006	Fraud Investigation	Livedoor	Tokyo exchange to delist Livedoor
12th Mar 2006	Fraud Investigation	Livedoor	Livedoor boss facing new charge
13th Feb 2006	Fraud Investigation	Livedoor	Livedoor chief Horie is charged

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