Livedoor Co. President Takafumi Horie speaks to reporters Jan. 17 after prosecutors ended an all-night raid into the company's office.

A Livedoor subsidiary is suspected of having violated the Securities and Exchange Law by disseminating false information in order to affect stock prices in 2004, investigative sources said.

Individuals who violate the law can receive up to five years in prison or a fine of ¥5 million, with an additional fine if they made a profit. A company can be fined up to ¥500 million.

The subsidiary, Tokyo-based Value Click Japan Inc., about 75 percent owned by Livedoor, is now called Livedoor Marketing Co.

Investigators suspect Livedoor may have committed securities exchange law violations besides spreading false information, a Securities and Exchange Surveillance Commission official indicated.

The investigation will likely focus on the extent to which charismatic Livedoor President Takafumi Horie was involved in the alleged wrongdoing.

At a news conference Jan. 17, Horie denied any wrongdoing and said that Livedoor was cooperating with prosecutors and conducting an internal investigation into the allegations, and would make the results of the internal probe public as soon as possible.

The Japan Times Weekly: Jan. 21, 2006
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