The counsel for Livedoor Co. founder Takafumi Horie pleaded not guilty to charges of accounting fraud Friday as Horie's Tokyo High Court appeal trial began.

Last March 16, the Tokyo District Court ordered Horie to serve 2 1/2 years in prison for falsifying financial statements and violating the Securities and Exchange Law.

"The original verdict (handed down by the district court) had grave, wrong fact recognitions, law violations, and argument discrepancies," the defense claimed in a statement submitted to the court. "I request (the high court) to discard the original verdict and to find the defendant innocent."