Former Livedoor Exec Says He Was Framed

Takafumi Horie leaves the Tokyo District Court after his final arguments in Tokyo Friday, Jan. 26, 2007. Former dot-com mogul Horie tearfully asserted his innocence Friday in a Japanese courtroom, accusing prosecutors of seeking his downfall through trumped up charges and targeting him as a famous businessman. (AP Photo/Kyodo News) (AP)

TOKYO -- Former dot-com mogul Takafumi Horie tearfully asserted his innocence Friday in a Japanese courtroom, accusing prosecutors of seeking his downfall through trumped up charges and targeting him as a famous businessman.

Following closing defense arguments at Tokyo District Court, Horie, 34, founder of Internet investor and services company Livedoor Co., wiped away a tear as he asked the judge to give his case a fair listening.

"I found this frightening," he said, choking up. "I've been working hard, and it happened so suddenly and without any warning."

Last year's raid on his company, his subsequent arrest on charges of securities laws violations and 95-day incarceration had come as a total shock to him, Horie said.

Clad in a dark suit and tie that contrasted with his usual sweatshirt attire, Horie told the court prosecutors were determined to convict him, no matter what. He said he should have been questioned first by securities officials, which is standard with suspected white-collar wrongdoing in Japan.

In Japanese trials, the judge asks defendants if they wish to speak after the prosecutor and defense closing arguments are over. Sometimes, defendants say a line or two. But Horie spoke for several minutes, which is unusual.

During the highly publicized trial, prosecutors have described a complex scheme of dummy companies and stock splits they say Horie directed to inflate Livedoor earnings and share prices.

But Horie said he was framed. He accused prosecutors of not being after the truth but rather after punishing someone famous whom they were determined to bring down.

"People who wish to take up the challenge of setting up new businesses are going to be discouraged," he said.

Prosecutors have demanded a four-year prison term for Horie. His verdict and sentencing will be handed down March 16, the court said Friday.

Horie's trial has drawn widespread media attention here because the outspoken millionaire, a celebrity prior to his arrest, had grown into a symbol of new entrepreneurship in Japan.

Horie was known for his cocky flamboyance in a culture dominated by drab, old-fashioned executives, and fascinated the public with his flashy buyout attempts of a professional baseball club and a media conglomerate.