Yoshiaki Tsutsumi, who once topped the list of the world's richest people, was arrested Thursday over a million dollar stock scam, Xinhua reports.


Japanese prosecutors accuse Tsutsumi of violating the security and exchange law by understating equity stakes held in Seibu Railway Co. by Kokudo Corp., which Tsutsumi formerly headed.

The 70-year-old tycoon was at the top of the Forbes' richest people list for four consecutive years from 1987 to 1990.

Tsutsumi's net worth in 1987 was estimated at $20 billion by Forbes magazine. However, he dropped to 159th on the 2004 list with $30 billion as his businesses were caught in trouble.

Tokyo-based Kokudo operates the Prince Hotels chain and sports facilities. It is a large business conglomerate that includes Seibu Railway and other companies.

In a statement submitted to authorities in June, Kokudo said it owned about 43 percent of shares in Seibu Railway, about 20 points lower than the real status, Japanese media quoted sources as saying.

In addition, the 10 top Seibu Railway shareholders held more than 80 percent of the shares when the statement was delivered, a violation of Tokyo stock exchange rules, the reports said.

Tsutsumi acknowledged the false statement in October and resigned from all the posts he held in Kokudo.

Tsutsumi and other Kokudo executives secretly sold a total of 56.65 billion yen ($540 million) Seibu Railway shares from August through October to other companies in order to avoid Seibu Railways' de-listing from the stock market, which was also illegal.