Regulators say the company’s losses amounted to 109.2bn yen ($1.32bn; £825m) between 2002 and 2011, which AIJ is accused of trying to hide.
Mr Asakawa said he never meant to lie to clients.
It comes after last year’s accounting cover-up at camera-maker Olympus.
On 23 March, regulators searched AIJ’s Tokyo headquarters and revoked its registration, effectively stopping it from operating as an asset manager.
AIJ manages group funds for more than 100 companies, including 92 corporate pension funds, according to the Securities and Exchange Surveillance Commission (SESC).
The SESC said the investment losses were a results of derivatives trading.
It also said that Mr Asakawa and company director Shigeko Takahashi conspired to conceal the losses and fabricated reports.