Takafumi Horie, the former CEO of Internet firm Livedoor Co who quit amid a corporate scandal, has pleaded not guilty to fraud charges in court.
The trial, given massive coverage by Japanese media, follows what became known as the 'Livedoor Shock', when a prosecutors' raid on the firm sent Tokyo shares tumbling, halted trading and rattled confidence in the world's second-largest stock market.
Mr Horie today denied violating securities laws by falsifying profit figures to boost Livedoor's share price.
Mr Horie's fall from grace sent shockwaves through the Japanese stock market, leading to a sharp fall in share prices earlier this year.
The scandal embarrassed Prime Minister Junichiro Koizumi, who had intended Horie to run for parliament as a poster boy for his reforms before Livedoor, worth $6 billion at its peak, hit trouble.
Prosecutors say Horie, 33, violated securities law by conspiring with colleagues to boost Livedoor's share price by falsifying corporate accounts.
Horie faces up to five years in prison and fines of up to 5 million yen ($43,000) if found guilty. Japanese media have said a verdict in the case may not come for five months or more.
