Japan's scandal-hit fund manager jailed for two years

TOKYO : Japan's best known fund manager Yoshiaki Murakami was sentenced to two years in prison Thursday for insider trading involving the scandal-tainted Livedoor Internet firm.

The Tokyo District Court also imposed a record fine of about 1.15 billion yen (9.4 million dollars) on Murakami, who led Japan's first hostile takeover bid and became an icon of a more free-wheeling style of capitalism.

The once high-flying corporate raider, wearing a dark grey suit and a navy blue tie, closed his eyes as he listened to the judge read out his punishment.

Murakami, who had protested his innocence during the trial, was accused of buying shares in Nippon Broadcasting after being approached by Livedoor founder Takafumi Horie with a proposal to jointly invest in the radio firm.

Murakami admitted he bought the shares after being approached by the Internet mogul, who was sentenced in March to two and a half years in prison in a separate fraud case.

But he said he did not think Livedoor had enough capital to buy five percent of the radio firm, the level at which Murakami's own purchases could be considered insider trading.

Murakami, a former poster boy for a brasher American-style of capitalism, targeted cash-rich but underperforming companies and became a vocal advocate of better corporate governance.

His reputation in Japan is divided between those who praise his role in promoting better shareholder rights, and critics who saw him as a ruthless asset stripper out for a quick buck.

The scandal even touched Bank of Japan governor Toshihiko Fukui, who faced calls to resign after admitting to investing in Murakami's fund, but kept his job after offering to donate the money to charity.