Horie testified for the defense of Yoshiaki Murakami on Tuesday. Murakami is also being tried for breaking securities laws. Murakami bought up shares in Nippon Broadcasting Systems before Horie launched a takeover of the company.
Murakami denies having knowledge of Horie’s intentions. He profited around $25 million from the deal.
Horie is obviously not happy with the decision, and has spoken publicly on TV Asahi.
“I did not intentionally attempt to pad earnings, and there was no false accounting. I do not accept the court’s verdict. I have stepped down as Livedoor president, I lost my position and my salary, and I was incarcerated. I believe I have lived up to my management responsibilities, he said. To apologize . . . would be inconsistent with my assertions.”
From Japan Times.
Horie was convicted of fraud and sentenced to two and a half years prison today.
Judge, Toshiyuki Kosaka read out in court, “Today we found you guilty but that doesn’t mean we are depriving you of your life. I would like you to admit the crime and use your abilities to make a fresh start in the future.”
I believe he will be appealing the shock decision.
The verdict of Horie’s charges will be announced tomorrow. I am fairly sure that he will be let off from the charges. Just his arrest and detainment have already caused enough damage both to him and Livedoor.
“Prosecutors fabricated the case by conducting severe interrogations and making arbitrary assessments while ignoring objective evidence indicating no criminal facts,” his lawyer said during a recent court session.
Nikko Cordial Corp is facing delisting from the Tokyo Stock Exchange over an alleged accounting scandal.
Reuters gives a list of some of the companies that were delisted from the Tokyo Stock Exchange, including Livedoor in April 2006.
Horie broke down in court in the final stage of court on Friday. Tears flowed as he read his statement, “I worked so hard for the public and myself after the company was established. The investigation and arrest came out of the blue,” he said as he wiped away his tears. “Spending 90 days in custody was hard.”
The ruling is scheduled for March 16th.
NYTimes online edition profiles Horie in this article.
They quote him saying, ““I enjoyed each occasion,” he said. “Instead of doing anything to succeed, I want to succeed on my own terms. Because if I can’t — I’m, like, ‘Whatever.’ ””
Livedoor’s current boss, Kozo Hiramatsu is confident about the future of Livedoor.
“We have talented people, have no debts, have technologies, and the brand name of Livedoor has become known widely to the public,” Hiramatsu said in an interview. “What we are missing now is a reputation, or so to say trust from society.”
In a recent AP interview Horie admitted to “standing out”. He said, “”I stood out too much,” he said in an exclusive interview Wednesday at his lawyer’s Tokyo office, looking relaxed in a black sweat shirt that said “Billionaire Boys Club.”
“Tackling something new means doing what’s not considered yet by the legal system,” he said.
Prosecutors wrapped up their case against Horie on Friday demanding a 4 year prison term, a US$42,000 fine or both.
“The defendant, who owned large amounts of shares, schemed to raise his personal profit” through illegal maneuvers, Ichikawa said. “His violations of criminal law are very grave.”
