Carlos Ghosn the former chairman of Nissan had saved the company from collapse but got indicted on allegations of financial misconduct.
Nissan thought it got out of troubles, they fell into a deeper crisis and once again brought down the global car industry’s most iconic figures. Ghosn’s downfall began when he was arrested in Tokyo last month and since then has been ousted as chairman of Nissan, Mitsubishi Motors and temporarily replaced as head of France’s Renault.
Recently prosecutors have stated that he has been re-arrested on allegations of under-stating his pay for a period of five years and would likely result in extending his detention until 30 December, while former Nissan director Greg Kelly might face similar charges as he was the mastermind helping Ghosn in understating his income. “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,” Nissan said in a statement.
If Ghosn is convicted of these charges it could mean up to 10 years in prison and fines racking up to 700m yen ($6.2m; £4.9m), according to the Japanese SEC (Securities and Exchange Surveillance Commission). In Japan more than 99% of people charged with a crime end up in prison.
Japanese public broadcaster NHK reported Monday that Ghosn is denying the charge against him and neither Greg nor Ghosn have spoken to the media about these charges.
Nissan’s internal investigations don’t limit to Ghosn’s underreported income statement, but on the suspicion of falsifying reports it was found that Ghosn was using company capital and expenses for paying his sister money as much as $100,000 (a total of !1.7 million over the years) for consulting jobs she did not perform and for buying personal homes in Rio de Janeiro and Beirut.