Business

Japanese prosecutors file new charge against Nissan’s Carlos Ghosn

By
Associated Press
Published Dec. 21, 2018
Updated Jan. 2, 2020, 4:37 p.m. ET

TOKYO — Japanese prosecutors added a new allegation of breach of trust against Nissan’s former chairman Carlos Ghosn on Friday, dashing his hopes for posting bail quickly.

Ghosn and another former Nissan executive, Greg Kelly, were arrested Nov. 19 and charged with underreporting Ghosn’s income by about 5 billion yen ($44 million) in 2011-2015. They also face the prospect of more charges of underreporting Ghosn’s income for other years by nearly $80 million in total.

The breach of trust allegations were filed a day after a court rejected prosecutors’ request for a longer detention of both men. The new allegation only applies to Ghosn, and Kelly could still be bailed out. A request for bail by Kelly’s lawyer is pending court approval, according to the Tokyo District Court, but his release will have to wait until next week since the request was still in process after office hours Friday.

Prosecutors in a statement Friday alleged that Ghosn in 2008 transferred a private investment loss worth more than $16 million to Nissan by manipulating an unspecified “swap” contract. Ghosn also profited by having the company transfer a total of $14.7 million to another company to benefit himself and that company’s owner, who helped in the contract manipulation, prosecutors said.

Japan’s NHK public television said the company owner is a Saudi Arabian acquaintance of Ghosn.

Shin Kukimoto, deputy chief prosecutor at the Tokyo District Prosecutors Office, refused to say if the two transactions were related or how Ghosn illegally profited. He also declined to identify the collaborator or whether the transactions were made overseas.

Ghosn and Kelly are only charged with underreporting Ghosn’s pay over five years, in violation of the Financial Instruments and Exchange Act. They have not been formally charged with an additional allegation of underreporting another $36 million for 2016-2018, for which their first 10-day detention was to expire Thursday.