Nissan, Ghosn charged with underreporting income in Japan
TOKYO — Prosecutors have charged former Nissan Motor Co. chairman Carlos Ghosn, another executive and the automaker itself for allegedly violating financial laws by underreporting income.
The charges imposed Monday involve allegations Ghosn’s pay was underreported by about five billion yen ($44 million US) in 2011-2015. The prosecutors said earlier that the allegations were the reason for Ghosn’s arrest on Nov. 19.
The arrest of an industry icon admired both in Japan and around the world has stunned many and raised concerns over the Japanese automaker and the future of its alliance with Renault SA of France.
The prosecutors issued statements Monday outlining new allegations against Ghosn and Greg Kelly, the other executive. Those are of underreporting another four billion yen ($36 million US) in 2016-2018. Nissan as a company was not mentioned in the latest allegations, which did not give details about the income thought to have been underreported.
In Japan, a company can be charged with wrongdoing. A court date is still undecided as the prosecutors continue to question Ghosn and Kelly.
The maximum penalty for violating Japan’s financial laws, as the prosecutors allege, is 10 years in prison, a 10 million yen ($89,000 US) fine, or both.