The chief executive officer of Japanese Internet portal operator Livedoor Co. was arrested Monday evening for violations of Japan's Securities and Exchange Law, the company said.
CEO Takafumi Horie was arrested by the Tokyo District Prosecutors' Office along with three others from his company, including Chief Financial Officer Ryoji Miyauchi and, Livedoor Director Fumito Okamoto, Livedoor said in a statement to the Tokyo Stock Exchange.
The arrest came a week after prosecutors raided the head offices of Livedoor and several affiliated companies.
Precise details of the reason for the raids or Monday's arrest have not been provided by prosecutors but a string of local media reports throughout last week said Livedoor is suspected to have misled the market on a number of acquisitions it made over the last couple of years.
The raids caused investors to panic and set Tokyo stocks diving for two straight days culminating in an early closure of the Tokyo stock market on Wednesday because the number of trades was approaching the computer system capacity.
Livedoor stock has been quoted down by its daily limit on each day since the raids. On Monday Livedoor stock ended the day down YEN 80 (AU$0.9) at YEN 256. A week ago, just prior to the raids, it was trading at YEN 696.