Takafumi Horie, the internet entrepreneur who waged a hostile takeover battle with Japan's largest broadcaster and ran for public office, yesterday pleaded not guilty to charges of securities fraud.

Mr Horie, the former chief executive of Livedoor, one of Japan's biggest internet groups, faces charges of collaborating with former executives to falsify corporate accounts and boost the company's share price.

After the prosecution read out the charges in the Tokyo district court, Mr Horie said he had not "carried out, or instructed [others to conduct] such crimes".

He said the indictment was malicious. "I feel annoyed. It is regrettable I have been indicted."

Mr Horie (33) appeared at the court wearing a dark suit, white shirt and blue tie, instead of his trademark T-shirt. Mr Horie, who is said to have prepared for his trial by studying documents and training at the gym, appeared fit and with short-cropped hair.

It was the first time Mr Horie, who had previously enjoyed being in the media spotlight, had appeared before the public since his release on bail in late April.

The prosecution claims Mr Horie masterminded the sale of Livedoor's own shares to dummy companies to inflate the company's profits. It also claims he conspired with other executives to spread false information about an acquisition to inflate a subsidiary's profits.

The defence argued the prosecution's arguments were without basis. Yasuyuki Takai, Mr Horie's chief lawyer, told the court the prosecutors were "portraying acts that are totally not criminal as though they were great crimes".

The trial is scheduled to continue until late November. - (Financial Times service)