Former investment fund manager Yoshiaki Murakami won't be going to prison after all: prosecutors have decided not to appeal a Tokyo High Court ruling earlier this month that gave him a suspended sentence.

Murakami, 49, a former government official who became a high-profile shareholder activist and founded the Murakami Fund, has appealed the guilty verdict, trying to overturn his conviction for insider trading connected to shares of Nippon Broadcasting System Inc.

The high court sentenced Murakami to two years in prison, suspended three years, overturning a Tokyo District Court court ruling that gave him actual prison time.

But the high court upheld the lower court's order that he pay a fine of ¥3 million and a ¥1.15 billion surcharge.

The high court determined that Murakami had not sought to gain profits using information supplied by Internet and financial services company Livedoor Co.