Horie is accused of breaking securities law. Prosecutors allege
that the 33 year old former poster boy for the new economy
conspired with others to massage Livedoor's profits to convey the
impression that the firm still enjoyed growth.
Horie denied the charges."I have not carried out, or instructed,
such crimes as were mentioned. The indictment was written with
malice," he told a Tokyo court on Monday. "It's regrettable that
I've been indicted."
Horie became a media star in Japan where he was seen as mounting
a brash challenge to the conservative business establishment, where
business practices such as mounting hostile takeovers is frowned
on.
He founded Livin' On the Edge, the predecessor company to
Livedoor, in the mid 1990s as a small internet company and oversaw
its growth into a stock market-listed titan worth $6 billion. With
frequent appearances on television and his casual business style,
Horie had become a celebrity and had even been approached by
Japanese prime minister Junichiro Koizumi and asked to consider
being a political candidate.
When prosecutors raided the firm in January $5bn of the
company's $6bn stock market valuation was wiped off by plunging
share prices in a scandal that shocked the whole Japanese stock
market.
Four other Livedoor executives are standing trial and media
reports in Japan have stated that some have made admissions to some
of the charges against them.
The lawyer acting for Horie, Yasuyuki Takai, told the court that
his client would be making no admission of guilt. "The prosecutors
have forcibly scripted a story that makes it look as if there had
been a major crime," he said. "The logic of their case does not
stand."
Horie will face up to five years in jail and a fine of
$43,000 if convicted, but more financially damaging could be any
damages claims from investors in Livedoor, whose shares were
delisted after the January raid.
