Livedoor, the internet start-up that Takafumi Horie turned into a billion dollar company, was on Friday hit with the biggest fine in Japanese corporate history for violating securities laws.

The Tokyo District Court ordered Livedoor to pay a fine of Y280m ($2.4m, €1.8m), and Livedoor marketing, its subsidiary, Y40m. The penalty surpasses the Y200m fine imposed on Seibu Railway in 2005 for falsifying financial statements. Livedoor could not be reached for comment on Friday night.