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Date: 2022-07-02 Page is: DBtxt001.php txt00015992

Bad Behavior
Carlos Ghosn and Nissan

Carlos Ghosn and Nissan have been indicted in Japan

Burgess COMMENTARY

Peter Burgess

Carlos Ghosn and Nissan have been indicted in Japan

Nissan's Carlos Ghosn removed as chairman Play Video

Hong Kong (CNN Business)Carlos Ghosn and Nissan, the Japanese automaker he saved from collapse, were indicted Monday on allegations of financial misconduct, deepening a crisis that already brought down one of the global car industry's most iconic figures.

Tokyo prosecutors said they indicted Ghosn, 64, and Nissan for under-reporting his income over a five-year period and are investigating allegations that the practice went on for even longer.

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).

Why Carlos Ghosn remains silent two weeks after his arrest Why Carlos Ghosn remains silent two weeks after his arrest

Former Nissan director Greg Kelly, who was arrested in Tokyo at the same time as Ghosn, was also indicted Monday, prosecutors said.

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. The maximum punishment in Japan for filing a false financial statement is up to 10 years in prison and a fine of up to 10 million yen ($89,000).

'Nissan takes this situation extremely seriously,' the company said in a statement. '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.'

It added that it 'will continue its efforts to strengthen its governance and compliance, including making accurate disclosures of corporate information.'

Shares in Nissan dropped nearly 3% in Tokyo.

After Carlos Ghosn, Japan may never hire another foreign CEO After Carlos Ghosn, Japan may never hire another foreign CEO

Ghosn's downfall has strained the global autos alliance between Nissan, Renault and Mitsubishi Motors.

Renault, which has appointed an acting chief executive but kept Ghosn in his positions of CEO and chairman, said it has not been provided with evidence of wrongdoing. 'We have no specific comment to make on the indictment and at this stage we still haven't received any evidence in relation to the investigation,' a spokeswoman said.

The French automaker's stock shed 1.7% in Paris.

More allegations

Prosecutors said Monday that they are also arresting Ghosn and Kelly again as they investigate additional allegations that the two men under-reported Ghosn's income by more than 4.2 billion yen ($38 million) between 2015 and 2017.

Ghosn and Kelly have not yet responded publicly to the allegations. Japanese public broadcaster NHK reported Monday that Ghosn is denying the charge against him. The two men have already been in detention for three weeks.

By rearresting them, the prosecutors will be able to detain them for questioning for even longer. After an arrest, they can hold a suspect for 72 hours without charging them with a crime. They can extend that by as much as 20 days with court approval.

The prosecutors' decision to go ahead and indict Ghosn and Kelly is an ominous development for the two men. More than 99% of people charged with a crime in Japan are eventually convicted, according to experts.

Yoko Wakatsuki and Saskya Vandoorne contributed to this report.
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NEW YORK, USA - APRIL 13: Dodge Challenger SRT Demon is displayed at the New York International Auto Show in New York City, United States on April 13, 2017. (Photo by Volkan Furuncu/Anadolu Agency/Getty Images) Dodge Demon: Take off in most powerful muscle car ever LONDON, ENGLAND - JULY 27: The new Rolls-Royce Phantom is unveiled at the world premiere of the 'The Great Eight Phantoms - A Rolls-Royce Exhibition' at Bonhams on July 27, 2017 in London, England. (Photo by Dave M. Benett/Dave Benett/Getty Images for Rolls-Royce Motor Cars) Rolls-Royce redefines comfort in the Phantom TURIN, PIEDMONT, ITALY - 2018/06/06: Exhibition of Aston Martin DB11 during the Turin Motor Show 2018. (Photo by Stefano Guidi/LightRocket via Getty Images) See the best Aston Martin ever A '90s behemoth returns: Lincoln Navigator Lamborghini Aventador is pure testosterone Jeep wants you to take this Grand Cherokee on the racetrack Cruisin' in a new Cadillac with no hands Tesla's Model 3 may not satisfy 'mainstream' buyers Chairman and CEO of Renault-Nissan-Mitsubishi Carlos Ghosn gestures as he delivers a speech during a visit of French President at the Renault factory, in Maubeuge, northern France, on November 8, 2018. - Macron is on a week-long tour to visit the most iconic French landmarks of the First World War, ahead of celebrations for the 100th anniversary of the November 11, 1918 armistice. (Photo by Ludovic MARIN / AFP) (Photo credit should read LUDOVIC MARIN/AFP/Getty Images) Nissan's Carlos Ghosn removed as chairman The all new Porsche 911 makes its debut See the new Porsche 911 Jeep unveils the Gladiator Jeep unveils its first truck in 26 years Off-roading in the world's most expensive SUV HATFIELD, UNITED KINDOM - JUNE 7: The McLaren 720S. This car was part of Essendon Country Clubs first Supercar show in June 2018. Named "Supercar Soiree", Essendon Country club displayed a wide range of the club members personal Cars. (Photo by Martyn Lucy/Getty Images) McLaren 720S is street-legal (for those who dare) This is the unbelievable story of beauty, bad business and Bugatti The Genovation GXE is an electric powered monster Take a ride in an electric Corvette GENEVA, SWITZERLAND - MARCH 07: Ford Mustang is displayed at the 88th Geneva International Motor Show on March 7, 2018 in Geneva, Switzerland. Global automakers are converging on the show as many seek to roll out viable, mass-production alternatives to the traditional combustion engine, especially in the form of electric cars. The Geneva auto show is also the premiere venue for luxury sports cars and imaginative prototypes. (Photo by Robert Hradil/Getty Images) Here's why Ford isn't phasing out the Mustang NEW YORK, USA - APRIL 13: Dodge Challenger SRT Demon is displayed at the New York International Auto Show in New York City, United States on April 13, 2017. (Photo by Volkan Furuncu/Anadolu Agency/Getty Images) Dodge Demon: Take off in most powerful muscle car ever LONDON, ENGLAND - JULY 27: The new Rolls-Royce Phantom is unveiled at the world premiere of the 'The Great Eight Phantoms - A Rolls-Royce Exhibition' at Bonhams on July 27, 2017 in London, England. (Photo by Dave M. Benett/Dave Benett/Getty Images for Rolls-Royce Motor Cars) Rolls-Royce redefines comfort in the Phantom TURIN, PIEDMONT, ITALY - 2018/06/06: Exhibition of Aston Martin DB11 during the Turin Motor Show 2018. (Photo by Stefano Guidi/LightRocket via Getty Images) See the best Aston Martin ever A '90s behemoth returns: Lincoln Navigator Lamborghini Aventador is pure testosterone Jeep wants you to take this Grand Cherokee on the racetrack Cruisin' in a new Cadillac with no hands Tesla's Model 3 may not satisfy 'mainstream' buyers Chairman and CEO of Renault-Nissan-Mitsubishi Carlos Ghosn gestures as he delivers a speech during a visit of French President at the Renault factory, in Maubeuge, northern France, on November 8, 2018. - Macron is on a week-long tour to visit the most iconic French landmarks of the First World War, ahead of celebrations for the 100th anniversary of the November 11, 1918 armistice. (Photo by Ludovic MARIN / AFP) (Photo credit should read LUDOVIC MARIN/AFP/Getty Images) Nissan's Carlos Ghosn removed as chairman The all new Porsche 911 makes its debut See the new Porsche 911 Jeep unveils the Gladiator Jeep unveils its first truck in 26 years Off-roading in the world's most expensive SUV HATFIELD, UNITED KINDOM - JUNE 7: The McLaren 720S. This car was part of Essendon Country Clubs first Supercar show in June 2018. Named "Supercar Soiree", Essendon Country club displayed a wide range of the club members personal Cars. (Photo by Martyn Lucy/Getty Images) McLaren 720S is street-legal (for those who dare) This is the unbelievable story of beauty, bad business and Bugatti The Genovation GXE is an electric powered monster Take a ride in an electric Corvette GENEVA, SWITZERLAND - MARCH 07: Ford Mustang is displayed at the 88th Geneva International Motor Show on March 7, 2018 in Geneva, Switzerland. Global automakers are converging on the show as many seek to roll out viable, mass-production alternatives to the traditional combustion engine, especially in the form of electric cars. The Geneva auto show is also the premiere venue for luxury sports cars and imaginative prototypes. (Photo by Robert Hradil/Getty Images) Here's why Ford isn't phasing out the Mustang


By Jethro Mullen, CNN Business
Updated 8:35 AM ET, Mon December 10, 2018
The text being discussed is available at
https://www.cnn.com/2018/12/10/business/carlos-ghosn-nissan-japan/index.html
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