Email Key To Japanese Stock Scandal

January 13, 2006: Japanese Internet company Livedoor's email retention policy could reveal the secrets that triggered the Tokyo Stock Exchange's near collapse.

According to several respected news sources including The Times of London, and Japan's Yomirui Shibun email is already being treated as the central medium used by investigating authorities to reveal the enormity of a fraud that could have demolished the Nikkei.

The TSE was forced to close early on Thursday 19th January as its decrepit technology was unable to deal with the number of small trades that were triggered by news that Livedoor was under investigation.

Livedoor apparently used email to send false contracts regarding share offerings that it required to purchase companies - which it already owned. It then resold the fraudulently created shares to generate profits that were in turn used to pad its 2004 earnings reports. Specifically, early reports claim that Value Click Japan, the predecessor of a Livedoor subsidiary, provided false information during its takeover of the publisher Money Life in 2004.

Adding fuel to the fire is the resignation of Yoshiaki Yamada, 59, a Livedoor director who joined the company from its second largest shareholder, Fuji Television Network Inc., in 2005.

And the alleged frauds have had a further, far more tragic outcome with the traditionally-styled suicide of Hideaki Noguchi, 38, the vice president of HS Securities. Before joining HS, Hideaki had been employed by Livin' on the EDGE Co - the company that went on to become Livedoor. p>

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