Ghosn, Nissan get formally charged

tokyo — Tokyo prosecutors indicted ousted Nissan Motor chairman Carlos Ghosn for under-reporting his income and also officially charged the automaker, making the firm culpable for the financial misconduct scandal that has shocked the industry.

Ghosn was arrested on November 19 on suspicion of conspiring to understate his compensation by about half of the actual 10 billion yen ($88 million) over 5 years from 2010.

He has been held in a Tokyo jail since then for questioning, but had not been officially charged until now. Prosecutors re-arrested him on Monday on fresh allegations of understating his income for 3 more years through March 2018.

Nissan, which fired Ghosn as chairman days after his arrest, has said the misconduct was masterminded by the once-celebrated executive with the help of former representative director Greg Kelly, who was also indicted for the first time on Monday.

Nissan, indicted for filing false financial statements, said it takes the charge seriously.

“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 said, adding it will correct past financial reports to include appropriate compensation figures.