Prosecutors say ex-Nissan chief, automakers broke financial laws
TOKYO — Prosecutors in Japan on Monday indicted Carlos Ghosn, the former chairman of Nissan Motor, and the auto company itself on charges that they had violated financial laws by underreporting Ghosn’s compensation.
The indictment came three weeks after Japanese authorities arrested Ghosn, who was once among the auto industry’s most respected executives.
In addition to the formal charges announced Monday, which cover allegations related to actions from 2011 to 2015, authorities rearrested Ghosn on similar charges stemming from a subsequent period. Ghosn, 64, remains in detention in Tokyo, where he has been held since being arrested Nov. 19.
In response to the indictment, Nissan said in a statement that it would strengthen its compliance efforts. It did not deny the charges.
Prosecutors also indicted Greg Kelly, a former Nissan human resources manager and member of the company’s board. Kelly, through his lawyer, Yoichi Kitamura, has denied wrongdoing. Kelly, like Ghosn, was rearrested Monday on allegations that he helped Ghosn underreport his compensation.
Nissan has said it uncovered misconduct by Ghosn that included underreporting his compensation and using company funds for personal expenses. In a news conference held the night Ghosn and Kelly were initially arrested, Hiroto Saikawa, Nissan’s chief executive, said Kelly “has been determined to be the mastermind of this matter, together with Carlos Ghosn.”
According to the indictment, Ghosn and Kelly understated Ghosn’s earnings from 2011 to 2015 by half in securities filings: $44.3 million compared with $88.4 million, including bonuses. Nissan was indicted on charges of having misstated Ghosn’s compensation in filings with financial authorities.
Nissan removed Ghosn as chairman shortly after he was arrested and removed Kelly as executive director.
Ghosn was also removed from a similar position at Mitsubishi Motors. He remains chairman of Renault, but the French company has appointed Thierry Bolloré, its chief operating officer, to assume Ghosn’s day-to-day responsibilities.
In a new arrest warrant issued Monday, Tokyo prosecutors said Ghosn and Kelly conspired to understate Ghosn’s pay in securities filings from June 2016 to June 2018. In the fillings, Ghosn’s compensation for the period was reported as $25.7 million. Prosecutors said they were investigating allegations that Ghosn was actually paid $63.6 million.