ID :
19307
Sat, 09/13/2008 - 10:55
Auther :
Shortlink :
https://oananews.org//node/19307
The shortlink copeid
Ex-Livedoor exec given 14-month prison term for accounting fraud+
TOKYO, Sept. 12 Kyodo - The Tokyo High Court sentenced former Livedoor Co. Chief Financial Officer Ryoji Miyauchi to 14 months in prison Friday for his role in accounting fraud and other securities law violations, reducing his jail term from the 20 months handed down in a lower court ruling in 2007.
Presiding Judge Taketaka Nakagawa said in handing down the ruling that Miyauchi
''deliberately defrauded general investors and the impact on the securities
market and society was very grave.''
The ruling concluded Miyauchi played a leading role as the chief financial
officer in the accounting fraud case by the Internet and financial services
company.
''He is also believed to have earned high income while making a public
accountant who questioned (the business practice) silent,'' the judge said.
Miyauchi, 41, who served as Livedoor founder Takafumi Horie's right-hand man,
had sought a suspended sentence, arguing that he cooperated with the fraud
investigation.
He has admitted to the charges against him, which also include stock market
manipulation, but said his crimes were less heinous than those in other
accounting fraud cases.
Miyauchi expressed remorse for his acts during the high court trial, saying he
undervalued corporate ethics and social responsibility when he was a Livedoor
executive.
Citing such an attitude and out-of-court settlements with some individual
investors who incurred losses by the sharp falls in Livedoor stock, Nakagawa
said, ''It is appropriate to reduce the prison term but suspension should not
be attached.''
The high court ruling said that Miyauchi, in conspiracy with Horie, 35, and
other executives, fabricated 5.3 billion yen in revenues in reporting
Livedoor's consolidated earnings for the year through September 2004.
In contrast with Miyauchi, Horie has pleaded not guilty both in his lower and
high court trials.
In July, the Tokyo High Court upheld a Tokyo District Court ruling sentencing
Horie to two years and six months in prison for his involvement in accounting
fraud and other breaches of securities law.
After the ruling, Horie's defense counsel immediately filed an appeal against
the high court decision with the Supreme Court.
Presiding Judge Taketaka Nakagawa said in handing down the ruling that Miyauchi
''deliberately defrauded general investors and the impact on the securities
market and society was very grave.''
The ruling concluded Miyauchi played a leading role as the chief financial
officer in the accounting fraud case by the Internet and financial services
company.
''He is also believed to have earned high income while making a public
accountant who questioned (the business practice) silent,'' the judge said.
Miyauchi, 41, who served as Livedoor founder Takafumi Horie's right-hand man,
had sought a suspended sentence, arguing that he cooperated with the fraud
investigation.
He has admitted to the charges against him, which also include stock market
manipulation, but said his crimes were less heinous than those in other
accounting fraud cases.
Miyauchi expressed remorse for his acts during the high court trial, saying he
undervalued corporate ethics and social responsibility when he was a Livedoor
executive.
Citing such an attitude and out-of-court settlements with some individual
investors who incurred losses by the sharp falls in Livedoor stock, Nakagawa
said, ''It is appropriate to reduce the prison term but suspension should not
be attached.''
The high court ruling said that Miyauchi, in conspiracy with Horie, 35, and
other executives, fabricated 5.3 billion yen in revenues in reporting
Livedoor's consolidated earnings for the year through September 2004.
In contrast with Miyauchi, Horie has pleaded not guilty both in his lower and
high court trials.
In July, the Tokyo High Court upheld a Tokyo District Court ruling sentencing
Horie to two years and six months in prison for his involvement in accounting
fraud and other breaches of securities law.
After the ruling, Horie's defense counsel immediately filed an appeal against
the high court decision with the Supreme Court.
