This morning's Financial Times reports that Takafumi Horie, chief executive of Japanese internet group Livedoor, was arrested and detained along with three other executives on Monday night. Also arrested were Ryoji Miyauchi, the group’s chief financial officer, and the presidents of two subsidiaries.
The detentions follow Horie's interrogation late last week by Tokyo prosecutors over allegations that his business misled shareholders.
Livedoor, one of Japan's best-known online names, and its maverick founder-ceo have been under investigation since the beginning of last week when the company offices were raided.
Horie has consistently and vehemently denied any breach of stock market rules and allegations that the firm provided false information to cover up losses. He wrote on his internet site: "I have no recollection of doing anything we are under suspicion for."
The probe sent the Tokyo Stock Exchange into near meltdown last week and the market was closed early for the first time in its history amid frantic selling [WAMN: 19-Jan-06].
The TSE is likely to consider delisting Livedoor if it is unable to provide answers to urgent questions. The company promises it will give more information
Data sourced from Mainichi Daily News (Japan); additional content by WARC staff