ISP Livedoor and its Former President alleged to hide fortune in Swiss Bank Accounts

Livedoor Former President-Takafumi Horie Livedoor, the Tokyo-based internet service provider surrounded by scandals, has apparently hid billions of yen in Swiss bank accounts. Apparently the gains have been made through unreported stock sales, as per a report.

The accounts which seemed to have been opened by fictitious companies and investment funds were actually held by Livedoor or its former president Takafumi Horie, the Mainichi Shimbun daily said, quoting anonymous sources.

Horie, the 33-year-old entrepreneur who had stunned corporate Japan by his appearance in a T-shirt while negotiating business deals, was arrested last week for alleged violation of securities trading law.

The Mainichi said, the money allegedly in Switzerland is believed to be part of the proceeds Livedoor made from selling shares it newly issued to buy out six companies in share-swap deals between March 2004 and January 2006.

Prosecutors are expected to investigate the matter for suspected tax evasion, the daily said.

The Tokyo prosecutors’ office has made no public comments on allegations that have emerged in local media. On the arrest of Horie it said that he was suspected of violating the Securities Exchange Law.

Prior to his arrest, Horie had been hailed as a herald of a brasher corporate Japan and along with the support of Prime Minister Junichiro Koizumi ran unsuccessfully for parliament with the support.