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Prosecutors indict Nissan’s former chairman for underreporting pay

Published:Monday | December 10, 2018 | 8:36 AM
AP Photo

TOKYO (AP) — Prosecutors have charged Nissan Motor Co.‘s former 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 or US$44 million in 2011-2015.

The prosecutors said earlier that the allegations were the reason for Ghosn’s arrest on November 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 4 billion yen ($36 million) 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 or US$89,000 fine, or both.

Some kind of action by the prosecutors had been expected because the detention period allowed for the allegations disclosed earlier was to end on Monday.

Nissan Motor Co. confirmed the charges against it in a statement and vowed to strengthen its governance and compliance.

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