Carlos Ghosn and Nissan have been indicted in Japan

Carlos Ghosn and Nissan, the Japanese automaker he saved from collapse, were indicted Monday on allegations ...

Posted: Dec. 10, 2018 2:39 PM
Updated: Dec. 10, 2018 2:39 PM

Carlos Ghosn and Nissan, the Japanese automaker he saved from collapse, were indicted Monday on allegations of financial misconduct, deepening a crisis that already brought down one of the global car industry's most iconic figures.

Tokyo prosecutors said they indicted Ghosn, 64, and Nissan for under-reporting his income over a five-year period and are investigating allegations that the practice went on for even longer.

Asia

Business figures

Carlos Ghosn

Companies

Continents and regions

East Asia

Japan

Nissan Motor Corporation

Crime, law enforcement and corrections

Criminal law

Indictments

Law and legal system

Tokyo

Ghosn's sudden downfall began when he was arrested in Tokyo last month. He has since been ousted as chairman of Nissan (NSANY) and Mitsubishi Motors (MMTOF) and temporarily replaced as head of France's Renault (RNSDF).

Former Nissan director Greg Kelly, who was arrested in Tokyo at the same time as Ghosn, was also indicted Monday, prosecutors said.

The two men are alleged to have collaborated to under-report Ghosn's income in Nissan's securities filings by about 5 billion yen ($44 million) over a five-year period ending in March 2015, according to prosecutors. The maximum punishment in Japan for filing a false financial statement is up to 10 years in prison and a fine of up to 10 million yen ($89,000).

"Nissan takes this situation extremely seriously," the company said in a statement. "Making false disclosures in annual securities reports greatly harms the integrity of Nissan's public disclosures in the securities markets, and the company expresses its deepest regret."

It added that it "will continue its efforts to strengthen its governance and compliance, including making accurate disclosures of corporate information."

Shares in Nissan dropped nearly 3% in Tokyo.

Ghosn's downfall has strained the global autos alliance between Nissan, Renault and Mitsubishi Motors.

Renault, which has appointed an acting chief executive but kept Ghosn in his positions of CEO and chairman, said it has not been provided with evidence of wrongdoing.

"We have no specific comment to make on the indictment and at this stage we still haven't received any evidence in relation to the investigation," a spokeswoman said.

The French automaker's stock shed 1.7% in Paris.

More allegations

Prosecutors said Monday that they are also arresting Ghosn and Kelly again as they investigate additional allegations that the two men under-reported Ghosn's income by more than 4.2 billion yen ($38 million) between 2015 and 2017.

Ghosn and Kelly have not yet responded publicly to the allegations. Japanese public broadcaster NHK reported Monday that Ghosn is denying the charge against him.

The two men have already been in detention for three weeks.

By rearresting them, the prosecutors will be able to detain them for questioning for even longer. After an arrest, they can hold a suspect for 72 hours without charging them with a crime. They can extend that by as much as 20 days with court approval.

The prosecutors' decision to go ahead and indict Ghosn and Kelly is an ominous development for the two men. More than 99% of people charged with a crime in Japan are eventually convicted, according to experts.

Article Comments

Terre Haute
Overcast
45° wxIcon
Hi: 46° Lo: 41°
Feels Like: 39°
Robinson
Overcast
44° wxIcon
Hi: 46° Lo: 41°
Feels Like: 35°
Indianapolis
Overcast
44° wxIcon
Hi: 46° Lo: 39°
Feels Like: 36°
Rockville
Overcast
45° wxIcon
Hi: 45° Lo: 40°
Feels Like: 39°
Casey
Overcast
45° wxIcon
Hi: 48° Lo: 40°
Feels Like: 36°
Brazil
Overcast
45° wxIcon
Hi: 46° Lo: 40°
Feels Like: 39°
Marshall
Overcast
45° wxIcon
Hi: 47° Lo: 41°
Feels Like: 39°
Rainy, Windy & Colder
WTHI Planner
WTHI Temps
WTHI Radar

Latest Video

Image

Friday Afternoon Weather

Image

April in Paris, Country Club of Terre Haute April 25 10am

Image

All You Need to Know for Friday

Image

Occasional showers. Windy. Colder. High: 46°

Image

Do you want a casino in Terre Haute?

Image

Rain, rain, and rain - Kevin breaks down the forecast

Image

West Vigo baseball

Image

Kids in the kitchen at the children's museum

Image

North Central Parke Schools to get new superintendent

Image

Putnam County Police Officer honored

WTHI Events