Record Japan Fine for Securities Fraud
Livedoor Co., an internet startup, was fined a record amount over charges of securities fraud. The Tokyo District Court ordered that Livedoor pay a penalty of 280 million yen ($2.4 million) for violating securities laws. Media Innovation Co., Livedoor's former marketing company, was fined 40 million yen. Takafumi Horie, Livedoor's creator, will spend two and a half years in jail for faking Livedoor's profits.
Tokyo District Justice Toshiyuki Kosaka said of the charges, "the prosecution proved its case." Two Livedoor accountants also were convicted of securities fraud for falsifying financial statements.
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