Former richest man in world arrested [View All]

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Justin McCurry in Tokyo
Friday March 4, 2005
The Guardian

The Japanese property tycoon Yoshiaki Tsutsumi, once the richest man in the world, has been arrested on suspicion of approving falsified financial statements and insider trading.

The allegations centre on Mr Tsutsumi's role as the former chairman of Kokudo, the major shareholder of the regional railway firm Seibu. Prosecutors allege that he and other executives conspired last June to falsify Seibu's 2003 financial statement, claiming that Kokudo's stake in the railway firm amounted to 43.1%, though the true figure was 64.8%.

The local media reported that he fabricated hundreds of individual shareholders whose shares were actually owned by Kokudo. By understating their stake, the executives attempted to bypass Tokyo stock exchange rules, which forbid a firm's top 10 shareholders from owning more than an 80% total stake.

Mr Tsutsumi was also allegedly involved in the sale of 180m Seibu Railway shares last September to business partners to reduce Kokudo's stake in the company in breach of rules on insider trading.

http://www.guardian.co.uk/japan/story/0,7369,1430319,00.html