Corp-Ethics.com - Report: Top Japanese fund manager charged

Company	Livedoor [Company Info]
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Date	Issue	Title
23rd Jun 2006	Fraud Investigation	Top Japanese fund manager charged

Report

One of Japan's leading financiers has been charged with insider trading in relation to share deals involving internet business Livedoor.

Prosecutors have indicted Yoshiaki Murakami, who is currently under arrest, after pursuing a criminal complaint from stock market regulators.

Mr Murakami has admitted he was guilty of insider trading when buying shares in Nippon Broadcasting System in 2005.

He said he bought shares knowing that Livedoor would buy a stake in the firm.

Mr Murakami is then understood to have sold shares to Livedoor, the once high-flying internet business which has become immersed in scandal, through his investment firm MAC Asset Management.

If convicted, Mr Murakami - who said he acted unwittingly - could face up to three years in prison and a fine of 3 million yen ($25,900).

His company could face financial penalties of up to $2.5m.

Prosecutors said Mr Murakami's company bought shares worth $8.5m in Nippon, which soon after became the subject of a fierce takeover battle between Livedoor and Fuji Television.

The fallout from Livedoor's spectacular rise and fall has affected Japan's whole financial community.

Four former Livedoor executives are currently on trial accused of fraud and falsifying corporate accounts, while the firm's founder Takafumi Horie has been charged with breaking securities laws.

Japan's central bank governor, Toshihiko Fukui, has been heavily criticised for investing in high-risk funds run by Mr Murakami.

Mr Fukui has apologised for his actions, amid calls from ministers for him to restore the institution's credibility.

Other Reports on Livedoor
Date	Issue	Company	Report
23rd Mar 2007	Fraud Investigation	Livedoor	Japanese tycoon and his staff guilty of fraud
4th Sep 2006	Fraud Investigation	Livedoor	Livedoor's Horie pleads innocence
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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