Posted on 03/04/2005 8:15:20 AM PST by BigSkyFreeper
TOKYO - Billionaire Japanese developer Yoshiaki Tsutsumi, once listed by Forbes as the world's richest man, was arrested Thursday over allegations of insider trading and falsifying financial statements at his company.
Tsutsumi, 70, owns a major stake in Kokudo Corp., which controls Seibu Railway and its 85 subsidiaries. He also owns Prince Hotels Inc., the Seibu Lions professional baseball team and Seibu Construction Ltd.
He was arrested on suspicion of violating the securities and exchange law, the Tokyo District Prosecutors' Office said. Prosecutors took Tsutsumi to a Tokyo detention center for questioning.
Prosecutors also raided Seibu Railway's offices to gather evidence on whether Tsutsumi and other executives falsified financial statements on the company's stock.
If convicted, Tsutsumi could face up to five years in prison and a fine of up to $47,600 for falsifying financial statements, or three years in prison and a fine of up to $28,600 for insider trading.
Tsutsumi's arrest marks a fall from grace for a man with close connections to Japan's ruling party politicians and ranked by Forbes magazine as the world's richest person in the late 1980s and early 1990s.
Prime Minister Junichiro Koizumi and members of his political faction often use Prince hotels, some of which are on land formerly owned by Japan's imperial family.
Japan's crashing land prices have toppled Tsutsumi from the top spot, but he is still estimated to be worth $3 billion.
Prosecutors said Tsutsumi conspired with several executives to falsify Seibu Railway's 2003 financial statement, putting Kokudo's stake in the railway at 43.16 percent instead of the actual 64.83 percent, in an alleged attempt to conceal violation of a Tokyo Stock Exchange rule that bans concentrated ownership.
Tsutsumi also was suspected of involved in insider trading to sell 180 million Seibu Railway shares in September 2004 to reduce Kokudo's stake in the railway company.
The stock exchange delisted Seibu Railway in December after the company acknowledged the falsification.
Seibu Railway said it was taking the criminal investigation seriously.
"We truly regret the development, and apologize to our shareholders, clients and everyone in society," company Vice President Masao Ishibashi said in a statement, promising "full" cooperation with authorities. "We'll do our best to become a transparent company which can be trusted."
Yo Yoshi..
we've got a room for ya. Martha just got out so it's all decorated and probably smells nice.
Yoshi is my preferred character in Super Mario Carts. The fast acceleration is worth the loss in control.
Now I know who the big cheese for all the Prince hotels is.
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