Ex-world's richest faces fraud allegations

Billionaire Japanese developer Yoshiaki Tsutsumi – once listed as the world’s richest man – was arrested today over allegations of insider trading and falsifying financial statements at his company.

Prosecutors also raided the offices of Seibu Railway to gather evidence on whether Tsutsumi, aged 70, and other executives falsified financial statements involving the company’s shares.

If convicted, Tsutsumi could face up to five years in prison.

The arrest marks a fall from grace for a man with close connections to Japan’s ruling party politicians and who was ranked by Forbes as the world’s richest person in the late 1980s and early 1990s.

Japan’s crashing land prices have toppled Tsutsumi from the top spot, but he is still estimated to be worth €2.3bn.