Former Livedoor Co. President Takufumi Horie and two other former executives decided in 2004 to post 1.58 billion yen in fictitious sales from two firms under Livedoor's control, according to sources close to the investigation into alleged accounting fraud.
The 1.58 billion yen is part of 5.35 billion yen in allegedly inflated group earnings results for the business year to Sept. 30, 2004, for which Horie and four other ex-Livedoor executives were either served new arrest warrants or arrested Wednesday.
The four executives include the two who played roles in booking the bogus sales -- then Vice President Fumito Kumagai and then Director Ryoji Miyauchi.