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Japanese tycoon guilty of fraud | |
(about 1 hour later) | |
Controversial tycoon Takafumi Horie has been found guilty of fraud, following a six-month trial which has gripped corporate Japan. | Controversial tycoon Takafumi Horie has been found guilty of fraud, following a six-month trial which has gripped corporate Japan. |
The former boss of the once high-flying internet firm, Livedoor, was found guilty of falsifying the company's accounts and misleading investors. | The former boss of the once high-flying internet firm, Livedoor, was found guilty of falsifying the company's accounts and misleading investors. |
Horie, 34, was sentenced to two years and six months in prison. His lawyers say he will appeal. | |
The disgraced entrepreneur had pleaded not guilty, saying he was framed. | The disgraced entrepreneur had pleaded not guilty, saying he was framed. |
Unlike many previous corporate scandals where businessmen have confessed their guilt in return for more lenient sentences, Mr Horie maintained he was innocent. | Unlike many previous corporate scandals where businessmen have confessed their guilt in return for more lenient sentences, Mr Horie maintained he was innocent. |
I cannot understand why there is a prison sentence - my disillusionment with the Japanese criminal justice system has only gotten worse Yasuyuki TakaiTakafumi Horie's chief lawyer | |
The tycoon accused the prosecution of targeting him for standing out too much with his brash, unconventional entrepreneurship. | The tycoon accused the prosecution of targeting him for standing out too much with his brash, unconventional entrepreneurship. |
Prosecutors had demanded a four-year prison term. | Prosecutors had demanded a four-year prison term. |
Speaking at a news conference following the ruling, Horie's chief lawyer, Yasuyuki Takai, said his client would make an appeal by the end of the day. | |
"I cannot understand why there is a prison sentence. Regrettably, my disillusionment with the Japanese criminal justice system has only gotten worse," he said. | |
He said the case was based on ambiguous evidence and the testimony of two former Livedoor executives who have already pleaded guilty to similar charges. | |
Culture clash | Culture clash |
Horie was extremely popular with a new breed of investors for his informality of style and business ambition, which saw Livedoor expand rapidly in a short space of time through a series of daring takeovers. | |
TV stations in Japan broadcast live coverage of the verdictBut Horie's high public profile, which saw him stand for parliament and date a number of leading actresses, put him at odds with Japan's conservative business establishment. | |
Livedoor was raided by prosecutors at the start of 2006 after allegations of financial impropriety surfaced and Mr Horie was subsequently arrested. | Livedoor was raided by prosecutors at the start of 2006 after allegations of financial impropriety surfaced and Mr Horie was subsequently arrested. |
He was accused of falsely reporting a pre-tax profit of some 5bn yen ($43m) for the year to September 2004 to hide actual losses of 310m yen. | He was accused of falsely reporting a pre-tax profit of some 5bn yen ($43m) for the year to September 2004 to hide actual losses of 310m yen. |
The Tokyo stock market was forced to close briefly when news of the investigation triggered a massive share sell-off. | The Tokyo stock market was forced to close briefly when news of the investigation triggered a massive share sell-off. |
Four senior Livedoor executives admitted their guilt, with former chief financial officer Ryoji Miyauchi acting as a leading prosecution witness. | Four senior Livedoor executives admitted their guilt, with former chief financial officer Ryoji Miyauchi acting as a leading prosecution witness. |
The case centred around how much Mr Horie knew about the state of Livedoor's finances and whether he conspired with other executives to inflate profits. | The case centred around how much Mr Horie knew about the state of Livedoor's finances and whether he conspired with other executives to inflate profits. |
Critics of Horie's actions have described Livedoor's fall from grace as a "Japanese version of Enron". |