The president of the Japanese Internet firm Livedoor Co., Takafumi Horie, was arrested on Monday, Kyodo News quoted investigative sources as saying.

Horie, 33, who is suspected of spreading false financial information to deceive investors, was arrested together with the company's Chief Financial Officer Ryoji Miyauchi, Director Fumito Okamoto and Livedoor Finance Co. President Osanari Nakamura, Kyodo reported.

The arrest warrants on the four high level executives were issued earlier in the day after prosecutors grilled Horie for the first time.

Horie denied any involvement in the alleged offenses through his personal blog on Sunday.

Livedoor, whose stock fell by the daily limit of 100 yen (about 0.87 dollars) to 596 yen (about 5.18 dollars) last Tuesday, is on suspicion of transferring profits from three affiliates to cover a deficit of about 1 billion yen (about 8.70 million U.S. dollars) for the business term ending September 2004.

Source: Xinhua