TOKYO: Defence lawyers for Nissan ex-Chairman Carlos Ghosn said they will seek his release on bail after Tokyo prosecutors indicted him yesterday on two new charges of financial misconduct.
The former executive – once lauded for rescuing a near-bankrupt Nissan – was charged with aggravated breach of trust for temporarily transferring personal investment losses to the automaker in 2008, and for understating his compensation for three years through March 2018, prosecutors said.
The charges were widely expected after Ghosn’s arrest for those allegations last month. Under Japanese law, suspects can be held for 23 days before being formally charged.
Prosecutors yesterday also indicted Nissan Motor Co Ltd and former Representative Director Greg Kelly for under-reporting Ghosn’s income for those three years. Kelly was arrested in November and released on bail on Christmas Day.
Ghosn, Kelly and Nissan have already been indicted for under-reporting Ghosn’s income for the five years through 2015.
“This second indictment for Kelly comes as no surprise as it merely makes what was a five year period for the first into eight years,” said Kelly’s lawyer Yoichi Kitamura.
Kelly, who was hospitalised for treatment of a neck problem immediately after his release, cannot leave the country without special permission. He has denied the allegations. Kitamura said he expects Ghosn and Kelly to be tried together on the two charges and that he will work closely with Ghosn’s legal team to prepare for the trial.
In a court hearing on Tuesday, Ghosn denied the allegations, calling them “meritless” and
“unsubstantiated”. – Reuters
Ghosn in court said he had asked Nissan to temporarily take on his foreign exchange contracts after the 2008-2009 financial crisis prompted his bank to call for more collateral. He said he did this to avoid having to resign and use his retirement allowance for collateral. – Reuters
