Former Kanebo Ltd. Vice President Takashi Miyahara, under arrest on suspicion of violating the Securities and Exchange Law, allegedly threatened the company's accounting executives into creating falsified financial statements, it was learned Monday.

On Friday, prosecutors arrested Miyahara, 63, along with former President Takashi Hoashi and former executive Kenzaburo Shimada, for allegedly submitting false financial statements to authorities.

According to sources close to Kanebo, Miyahara instructed the firm's accounting section to window dress the financial statements for fiscal 2001. When the section balked, he severely criticized its executives, the sources said.