JAPAN'S disgraced internet tycoon Takafumi Horie, founder of the scandal-tainted Livedoor company, pleaded not guilty to fraud charges at the start of his trial today.

"I've never done such things and I didn't order such things, either.

"I regret this indictment," Mr Horie told the trial at the Tokyo District Court.

The 33-year-old entrepreneur is accused of falsely reporting a 5.03 billion yen ($56.2 million) pre-tax profit for the year to September 2004 to hide actual losses of 310 million yen.

Mr Horie, who as Livedoor boss shunned suits and ties in favour of t-shirts, appeared in court in a dark blue jacket, white shirt and blue tie, entering the court building through a rear entrance.

About 1000 people flocked to the court to try to catch a glimpse of him at his first hearing, the court said.

News of the Livedoor probe in January briefly sent the Tokyo stock market into freefall, forcing Asia's largest bourse to close early for the first time as a flood of sell orders threatened to swamp the computer system.

Four other executives of the once high-flying Livedoor already have admitted to fraud, but Mr Horie's case took longer to come to court because he has maintained his innocence.

The brash entrepreneur revelled in thumbing his nose at the establishment during his meteoric rise as one of Japan's leading internet stars, but the Ferrari-driving whizkid has experienced a brutal fall from grace.

Mr Horie built one of Japan's top internet empires by buying up companies in everything from financial services to real estate.

He sent tremors through Japan's corporate circles when he tried unsuccessfully to take over the nation's most watched TV network. He even ran for parliament last year with the blessing of Prime Minister Junichiro Koizumi.

SOURCE