The former chief of Japanese Internet venture company Livedoor was indicted today on charges of breaking securities law by spreading false information and falsifying accounts.
Takafumi Horie (33) was arrested in January just months after running unsuccessfully for parliament.
Takafumi Horie
Media reports have said he has denied any illegal actions. Livedoor and a Livedoor affiliate were also indicted, as were three others:
former Livedoor Chief Financial Officer Ryoji Miyauchi, former Livedoor director Fumito Okamoto, and former executive Osanari Nakamura, Tokyo prosecutors office said.
The case exposed the inadequacy of the Tokyo Stock Exchange's trading systems, prompted loud calls for a more robust securities watchdog, and embarrassed Prime Minister Junichiro Koizumi because ruling-party executives backed Mr Horie in a failed bid for a seat in parliament last September.
The arrest and charges represent a fall from grace for the flamboyant Mr Horie, a Tokyo University dropout who strung together a collection of Internet businesses and became a symbol of an innovative and dynamic "New Japan" that challenged a complacent Japan.
Mr Horie faces up to five years in prison or a fine of up to 5 million yen ($42,000) if he is found guilty.