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.

West Lafayette
Partly Cloudy
74° wxIcon
Hi: 88° Lo: 67°
Feels Like: 74°
Kokomo
Clear
75° wxIcon
Hi: 87° Lo: 67°
Feels Like: °
Rensselaer
Partly Cloudy
73° wxIcon
Hi: 86° Lo: 67°
Feels Like: 73°
Fowler
Partly Cloudy
74° wxIcon
Hi: 87° Lo: 68°
Feels Like: 74°
Williamsport
Partly Cloudy
75° wxIcon
Hi: 87° Lo: 68°
Feels Like: 75°
Crawfordsville
Partly Cloudy
72° wxIcon
Hi: 86° Lo: 65°
Feels Like: 72°
Frankfort
Partly Cloudy
72° wxIcon
Hi: 86° Lo: 64°
Feels Like: 72°
Delphi
Partly Cloudy
74° wxIcon
Hi: 89° Lo: 68°
Feels Like: 74°
Monticello
Partly Cloudy
74° wxIcon
Hi: 91° Lo: 70°
Feels Like: 74°
Logansport
Partly Cloudy
72° wxIcon
Hi: 87° Lo: 66°
Feels Like: 72°
Some storms with some severe weather risk...
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 767409

Reported Deaths: 13980
CountyCasesDeaths
Marion1054251805
Lake569191030
Allen42938698
St. Joseph37313568
Hamilton37298426
Elkhart29749470
Tippecanoe23479230
Vanderburgh23201405
Porter19573327
Johnson18822392
Hendricks18072321
Madison13548346
Clark13533198
Vigo12834256
LaPorte12566225
Monroe12546178
Delaware11143198
Howard10672237
Kosciusko9777124
Hancock8740150
Bartholomew8262157
Warrick8069157
Floyd8027182
Grant7366181
Wayne7233201
Boone7184105
Morgan6910143
Marshall6332116
Dubois6274118
Cass6090111
Dearborn601278
Noble599290
Henry5947111
Jackson516377
Shelby510898
Lawrence4922127
Gibson462696
Montgomery458192
Clinton455255
DeKalb455285
Harrison453577
Whitley415745
Huntington415582
Steuben410660
Miami405573
Jasper401155
Knox388391
Putnam385062
Wabash369083
Adams352956
Ripley351271
Jefferson341886
White339654
Daviess3090100
Wells303581
Greene293485
Decatur292593
Fayette286364
Posey281735
Scott280058
LaGrange277572
Clay273348
Washington254037
Randolph247783
Jennings239449
Spencer238731
Fountain235250
Starke229859
Owen222659
Sullivan221343
Fulton208345
Jay202932
Carroll197322
Orange191156
Perry189739
Vermillion180844
Rush177527
Tipton172747
Franklin171935
Parke155216
Pike141734
Blackford138032
Pulaski123648
Newton123036
Benton109715
Brown106043
Crawford105616
Martin92515
Warren87715
Switzerland8348
Union73610
Ohio58111
Unassigned0428

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events