Ex Nissan and Renault CEO Behind Bars through to the New Year

Former Nissan Motor Co. Chairman Carlos Ghosn was served with a fresh arrest warrant Monday for allegedly understating his remuneration by a further 4.2 billion yen ($37.3 million) in the company’s securities reports for the three years through March, raising the possibility of him remaining in custody beyond Christmas.


photo credit to: http://kataeb.org

The arrest on the new allegation came as Tokyo prosecutors indicted Ghosn, one of his close aides and Nissan as a company on a charge of violating the financial instruments law for making misstatements in the company’s releases to the market during the five years through March 2015.


Just ahead of the new developments in his alleged financial misconduct that has rocked the automotive industry, Japan’s securities watchdog filed a criminal complaint against Ghosn, Greg Kelly, a former representative director of Nissan, and the company over the suspected misstatements in the five year period.


Ghosn and Kelly were initially arrested three weeks ago on suspicion of breaching the Financial Instruments and Exchange Act by allegedly stating only about 5 billion of his 10 billion yen compensation during the five years through March 2015 in its securities reports submitted to Japanese regulators.


The fresh arrest warrants against Ghosn, who is credited with rescuing Nissan from near-bankruptcy in the 1990s, and Kelly allow prosecutors to keep them in custody at a Tokyo detention center and to interrogate them further.


The prosecutors’ special investigation squad said the men are suspected of conspiring to report only about 2.9 billion yen of the former chairman’s nearly 7.2 billion yen remuneration in the past three business years.


Shin Kukimoto, deputy head at the Tokyo District Public Prosecutors Office, said at a press conference Monday that a fresh arrest warrant was issued against Ghosn after conducting an ”appropriate judicial review”.


Ghosn seemed healthy and has neither complained about the food at the facility nor expressed displeasure at his treatment, said Mendonca, who has brought him reading materials, socks and fruit.


He said Ghosn, partial to mystery novels, is reading one by Jeffrey Archer, a former British politician who was jailed for perjury, as well as magazines like The Economist and Time.


Reference: Ex-Nissan boss Ghosn could remain in custody beyond Christmas


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