[My own translation of a Swedish news article which can be found here]
TOKYO. On Monday, the office of the public prosecution in Tokyo brought in an indictment against Takafumi Horie, founder of the infamous business empire Livedoor. Meanwhile the Livedoor stock tumbled to an all time low of 40 öre [~6 US cents].
Horie and three other ex directors of Livedoor stand accused of breaking the corporation law. They have been in custody since January 23rd and were arrested again on the Monday, suspected of crime against the bookkeeping law as well.
According to Japanese media, all involved save Horie himself have admitted that they’ve been spreading false information in order to push Livedoor up on the stock market. Furthermore, it is said that they have ordered employees to cheat in the company’s bookkeeping.
Takafumi Horie, who during the last couple of years has been commended for his business methods and for daring to challenge the establishment, has denied all charges.
- We have strong evidence, the assistant attourney Tetsuo Ito said at a press conference in Tokyo on the Monday.
Ito was the man who initiated it all when he, the 16th of January, ordered the police raids against Livedoor’s main office and the directors’ homes.
The Tokyo stock market responded to the public attourney’s actions by dropping the Livedoor stocks to a new low. Compared to the all-high from the end of last year, Livedoor has dropped by over 90 percent. During the Monday the stock fell to 61 yen, which is the equivalent of approximately 4 Swedish crowns [~53 cents].
The Tokyo stock market has placed Livedoor and its daughter company Livedoor Marketing on the so called observation list to investigate a potential removal from the stock market.
According to a spokesman for the stock market, Livedoor has as yet not responded to the series of questions the stock market sent at the end of January when the affairs were unveiled. Livedoor’s new management has requested respite due to the fact much of the bookkeeping has been apprehended by the police.
Around the same time as the indictment was brought in, further information from the police investigation was revealed. Among other things, Takafumi Horie is said to have, in an email, ordered an employee to tailor the bookkeeping and make it appear as if Livedoor was making a profit when it was in fact losing millions.
According to the attorneys, Horie and the others accused were systematically purchasing smaller companies in secrecy. Afterward, when Livedoor through a dummy purchase controlled the stock majority, they made a public offer. Thanks to the enormous attention, both Livedoor’s stock rates and those of the company being purchased soared.
In the shadow of the investigation, an intensive debate is being held regarding the mass media’s role in the “Livedoor Shock” affair, which it is now referred to in Japan. Many debators say that the media carry a part of the responsibility for the thousands of Japanese stock holders who’ve lost large sums of money.
By neglecting to investigate the business methods, media created an image of Horie as an economic savior. The debate reminds of that held in Sweden after the so called New Economy crash landed.
[Translation by me. Original article by Jon Thunqvist.]
The author of this translation humbly begs forgiveness for any flaws, errors or inaccuracies present and corrections are definitely welcome.