Yoshiaki Tsutsumi, a billionaire and former chairman of Japan’s Seibu Railway Co., was accused of falsifying financial statements and insider trading, according to Tokyo’s public prosecutor.

Seibu, which maintains a commuter rail service between Tokyo and its suburbs, was indicted on committing fraud, for fabricating its list of shareholders. Kokudo Corp., Tsutsumi’s closely held real estate company, was accused of insider trading and deceiving Japanese companies including All Nippon Airways Co. and urging them to purchase Seibu’s shares before they were offically released from the Tokyo exchange, the prosecutor said in a statement.

If found guilty of fraud, Tsutsumi could be imprisoned for five years or be imposed a 5 million yen fine. Seibu could have to pay 500 million yen ($4.8 million) as a fine in case it’s condemned of fraud. Tsutsumi, who has been under arrest since March 3, could not be reached to comment. He denied any wrongdoing on October 13.

If found guilty for insider trading, Tsutsumi could be imprisoned up to three years and Kokudo could be imposed a fine up to 300 million yen, according to statement by prosecutors released on March 3.

Representatives from both companies Kokudo’s President Toshiyuki Ono and Seibu’s Vice President Masao Ishibashi made public apologies on their Web sites on March 23.