Former Nissan Chairman Carlos Ghosn Charged With Financial Misconduct

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Former Nissan Chairman Carlos Ghosn Charged With Financial Misconduct

JAPAN: Japanese prosecutors indicted Nissan’s ousted chairman Carlos Ghosn today  for financial misconduct accusing him of under-reporting his pay package over a five-year period.

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).

If found guilty, he could face up to 10 years in prison. Nissan and an executive, Greg Kelly, were also indicted for their roles in the scandal. 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.

Ghosn, whose arrest on 19 November rocked the Japanese car industry and cast doubts over the future of Nissan’s alliance with Renault, is facing another 20 days in detention after prosecutors added to the charges against him and another Nissan executive, Greg Kelly.

His defence team say the accusations against Mr Ghosn are invalid because they do not relate to his salary, but to future payments that he was expected to receive after retirement.