Takafumi Horie, the flamboyant internet tycoon, and three business associates have been charged with violating Japanese securities laws.

Mr Horie, pictured, the founder of the leading internet company Livedoor, had become a symbol of a Japan's emerging online economy.

"During the court proceedings, we will clarify that the key to Livedoor’s rapid growth was criminal acts that interfered with fair trade in securities," the Tokyo District Prosecutor's Office today said in a statement.

Japan’s securities watchdog had alleged on Friday that Livedoor Marketing, an affiliate company, had released false information related to the acquisition of a publishing firm in 2004.

The Securities and Exchange Surveillance Commission said the parties involved allegedly lied about Livedoor Marketing’s accounts and the purchase in a bid to "entrap others" and "influence the securities market."

The 33-year-old entrepreneur -- nicknamed "Horie-mon" because of his resemblance to a Japanese cartoon character -- was arrested on January 23. He had built one of Japan’s leading internet groups through a high-profile flurry of acquisitions in sectors ranging from publishing to car sales.

Bids to buy Japan's most popular television network and a baseball team failed, but raised Mr Horie's already high profile.

However, much of corporate Japan's old guard, who objected to Mr Horie's brash style, will feel vindicated by news of the charges.

If found guilty, the former executives face up to five years in prison each and fines of up to ¥5 million (£24,370).

Mr Horie has denied any wrongdoing. "I want to accurately portray my side of the story in court," he told investigators, according to the online editions of the Yomiuri and Mainichi newspapers.

Mr Horie resigned from Livedoor after his arrest and the company he founded appointed a new management team headed by Kozo Hiramatsu, a 60-year-old.

Livedoor said it has yet to settle on a course of action.

"We have not received any communication from the prosecutors office. We will decide on the course of our plans after we receive it," a Livedoor spokeswoman said.

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