Former Livedoor exec says founder Horie knew accounts were window-dressed

Former Livedoor Co. board member Fumito Kumagai told a court Tuesday that the company's founder, Takafumi Horie, knew that the firm's accounts had been window-dressed.

"I told him it's been pointed out that the accounts have been falsified. He then simply replied, 'Try hard,'" Kumagai told the Tokyo District Court as a witness.

"'Try hard' meant that I should overcome the problem. Mr. Horie knew they were fictitious," Kumagai told Horie's hearing.

Horie has categorically denied he was aware that Livedoor's consolidated mid-term accounts, that were closed in September 2004, had been window-dressed, while the four others standing trial have testified that Horie knew that they were falsified.

A certified public accountant warned that it is inappropriate that the sales figures of two of Livedoor's affiliates had been padded by over 1.5 billion yen when Livedoor settled its consolidated accounts in September 2004.

The five former executives of Livedoor Co. including Horie and Kumagai are under indictment on charges of violating the Securities and Exchange Law.