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Regular-article-logo Saturday, 23 November 2024

Reports: Ghosn, Kelly, Nissan charged in underreported pay

Nissan, Ghosn and Kelly are suspected of falsifying millions of dollars' worth of Ghosn's income

AP Tokyo Published 10.12.18, 07:33 AM
In this May 12, 2016, file photo, then Nissan Motor Co. president and CEO Carlos Ghosn answers a question during a joint press conference with Mitsubishi Motors Corp. in Yokohama, near Tokyo.

In this May 12, 2016, file photo, then Nissan Motor Co. president and CEO Carlos Ghosn answers a question during a joint press conference with Mitsubishi Motors Corp. in Yokohama, near Tokyo. AP

Japanese media reported on Monday that prosecutors have added to charges against Nissan's former chairman Carlos Ghosn, extending his detention following his arrest on November 19.

Meanwhile, the Securities and Exchange Commission said it had filed criminal complaints against Ghosn and another Nissan executive, Greg Kelly. A commission official said on Monday that Nissan, Ghosn and Kelly were suspected of falsifying millions of dollars' worth of Ghosn's income. In Japan, a company can be charged with wrongdoing.

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The prosecutors say Ghosn is suspected of underreporting his income by 5 billion yen ($44 million) over five years. The allegations newly reported on Monday would increase that amount by 4 billion yen ($36 million).

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

Nissan executive Greg Kelly.

Nissan executive Greg Kelly. AP

Kelly, 62, is suspected of having collaborated with Ghosn. Kelly's attorney in the US says he is asserting his innocence.

Ghosn, 64, has not commented.

Both men were dismissed from their managerial roles at Nissan following their arrests.

Ghosn was sent to Nissan by its partner Renault SA of France in 1999. He led a dramatic turnaround the near-bankrupt Japanese automaker. But Ghosn's star-level pay has drawn attention since executives in Japan tend to be paid far less than their international counterparts.

Only Ghosn's attorneys and embassy officials from Lebanon, France and Brazil, where he has citizenship, have been allowed to visit him.

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