Ex-Livedoor accountants sentenced

The scandal forced the Tokyo stock market to close early

Two former accountants for the Japanese internet firm Livedoor have been jailed over their role in a financial scandal.

A Tokyo court sentenced Taishin Hisano to 10 months in prison and gave Motoshi Kobayashi a one year suspended term for colluding to conceal company losses.

The ruling follows the convictions of Livedoor founder Takafumi Horie and four other executives.

Horie has denied knowledge of any wrongdoing at the company, and is appealing the verdict.

The two accountants, who worked for the now-defunct auditing company Koyo and Co, both pleaded innocent.

However, the presiding judge said the pair had knowingly taken part in the fraud with the intention of retaining an important client.

Prosecutors had demanded one year and six months in prison for each defendant.

Falsifying accounts

The convictions come a week after Livedoor founder Takafumi Horie was sentenced to two years and six months in jail for his part in the scandal that caused panic on the Tokyo stock market last year, forcing it to close early for the first time.

Takafumi Horie remains defiant over his role in the Livedoor scandal

Ryoji Miyauchi, Livedoor's former finance director, was also sentenced to 20 months in prison on Thursday, after pleading guilty to falsifying accounts.

Three other former executives, who pleaded guilty to some of the charges against them, were given suspended prison terms.

Livedoor lost more than $5bn in market value following the scandal, which also embarrassed senior politicians who had praised 34-year-old Horie as a symbol of a new wave of Japanese entrepreneurship.