Try the new FT.com

Last updated: January 23, 2006 10:12 pm

Livedoor chief Horie, three executives arrested

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

Takafumi Horie, chief executive of the Japanese internet group Livedoor, was arrested along with three other executives on Monday night as the probe into allegations of breaches of security exchange laws gathered pace following the apparent suicide of a key witness.

Prosecutors who had questioned Mr Horie during the day arrested the Livedoor chief together with Ryoji Miyauchi, the group’s chief financial officer, and the presidents of two subsidiaries. They are being detained at Kosuge Detention Center, some distance from Tokyo.

Livedoor executives are suspected of violating the securities exchange law by window-dressing the accounts of group companies and providing false information to manipulate the market.

The move on Monday follows a week of frenetic activity, which began with the Public Prosecutor Office’s raid on Livedoor offices on Monday of last week and led to a near collapse of the Tokyo Stock Exchange during the week, as nervous investors rushed to offload Livedoor and other internet stocks.

Prosecutors are believed to have moved faster than usual after the apparent suicide of the witness, found dead two days after the raid.

The arrest of Mr Horie, who on Sunday wrote in his personal blog that he had not been involved in any of the alleged wrongdoing cited in the press, casts doubt over the future of the fast-growing internet services group and its once popular founder.

Mr Horie and the internet services group he founded had come to symbolise a new generation of entrepreneurs, unafraid to challenge the status quo and with the potential to become the Google or Yahoo of Japan.

The Tokyo Stock Exchange said on Monday an arrest would not automatically lead to a de-listing of Livedoor, which would depend on the nature of the charges made.

Copyright The Financial Times Limited 2017. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

NEWS BY EMAIL

Sign up for email briefings to stay up to date on topics you are interested in

SHARE THIS QUOTE