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Livedoor Chief Indicted

by Mary Swire, for LawAndTax-News.com, Hong Kong

14 February 2006

It emerged on Monday that Livedoor boss, Takafumi Horie and three of the internet firm's other executives have been indicted, charged with breaching Japan's securities laws.

The four men stand accused of misleading investors by spreading false information about an affiliate's 2004 acquisition of a publishing firm.

Investigators are also reportedly hoping this week to secure warrants relating to falsification of Livedoor's financial statements undertaken by Horie and his associates.

Last month, in an unprecedented move by a major global market, the Tokyo Stock Exchange was forced to temporarily suspend trading shortly before the market closed, as a wave of panic selling overwhelmed the exchange's computer systems.

The fallout from a raid on Livedoor by Japanese prosecutors triggered the sell off, and the TSE was forced to halt trading twenty minutes before the 3pm close, as the number of orders and executions threatened to exceed its systems' capacity.

In response to the crisis, the Exchange announced that it would be increasing its computerized trading system's capacity from 4.5 million daily transactions to 5 million.

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