Ryoji Miyauchi, former chief financial officer of Internet startup Livedoor Co., had told the court earlier this month in questioning that Horie was behind a scheme that fabricated sales to inflate earnings.

Horie, 33, has pleaded not guilty to charges of securities laws violations.

How much Horie knew about the scheme is the key question in the trial, which began Sept. 4. In earlier testimony, Miyauchi had said he thought that conversations he and others had with Horie meant the entrepreneur was instructing him to falsify earnings.

But chief defense lawyer Yasuyuki Takai said Miyauchi may be confused. Under questioning, Miyauchi became less certain about his earlier testimony.

The Japan Times Weekly: Sept. 30, 2006
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