Carlos Ghosn, Nissan Indicted for Making False Disclosures in Securities Reports

Nearly one month after being arrested for his alleged involvement in financial and other acts of misconduct, former Nissan executive Carlos Ghosn has been officially indicted by Japanese authorities for violating the Japan Financial Instruments and Exchange Act.
Carlos Ghosn officially indicted 1 photo
Photo: Nissan
More to the point, Ghosn and his alleged partner in crime Greg Kelly are now both charged with making false disclosures in annual securities reports. Aside for the two men, Nissan, as a legal entity, suffered the same fate.

“Nissan takes this situation extremely seriously. 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,” said the carmaker in a short statement after the announcement.

“Nissan will continue its efforts to strengthen its governance and compliance, including making accurate disclosures of corporate information.”

As per CNN, citing various experts, nearly 100 percent of the people charged with a crime in Japan is eventually convicted.

The news of Ghosn’s illegal actions first surfaced on November 19, when the Japanese carmaker announced out of the blue the executive’s ousting and his arrest. At the time, Ghosn was accused of underreporting his compensation with the Tokyo Stock Exchange and numerous other significant acts of misconduct.

As per the initial accusations, Ghosn conspired with Nissan director Kelly to understate his compensation to about half of the $88 million received from 2011 to 2015. As a result, the executive has cheated Japanese authorities of the taxes owed for about $35 million, the source says.

Ghosn is also accused of having cheated the trust of Nissan by having the company pay for personal vacations, buy houses and make donations on his behalf.

There is no reaction to this new development from Nissan’s ally, Renault. Initially, the French stood by their CEO, asking Nissan to “provide all information in their possession arising from the internal investigations related to Mr. Ghosn.”
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram Twitter
press release
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories