Biz / Auto

Ghosn hit with more charges, release unlikely

Tokyo prosecutors on Friday filed two new charges of financial misconduct against former Nissan chief Carlos Ghosn.
Ghosn hit with more charges, release unlikely

Pedestrians pass by a television screen showing a news program featuring former Nissan chief Carlos Ghosn in Tokyo on January 8, 2019.

Tokyo prosecutors on Friday filed two new charges of financial misconduct against former Nissan chief Carlos Ghosn, meaning the auto tycoon is unlikely to be leaving his jail cell soon.

Lawyers for the former jet-setting executive immediately said they would file a bail application, but have acknowledged that he will probably be detained until a trial.

Ghosn denied any wrongdoing and argued in a dramatic first court appearance on Tuesday that he had been "wrongly accused and unfairly detained."

He was already facing a first charge for allegedly under-reporting his compensation over five years to the tune of 5 billion yen (US$46 million) in official documents to shareholders.

The second charge against him alleges that the under-reporting continued for another three years.

The third charge, for aggravated breach of trust, involves a complex alleged scheme under which Ghosn is said to have tried to transfer losses on foreign exchange contracts to Nissan's books.

It also alleges that he used company funds to repay a Saudi acquaintance who put up collateral for the contracts.

Prosecutors also filed charges Friday against Nissan and Ghosn aide Greg Kelly over the additional three years of under-reporting pay.

The breach of trust charge is regarded as particularly serious, and Ghosn's lawyer admitted Tuesday that his client was unlikely to secure bail if prosecutors pressed the charge formally.

It would be "very difficult," said Motonari Otsuru.

"In general in such cases in Japan, it is indeed the case that bail is not approved before the first trial does take place," he said, adding that it could be six months before the case comes before a judge.

New allegations emerge

Ghosn has appeared in public just once since his shock November 19 arrest, during the Tuesday court hearing called after his lawyers requested judges to explain the tycoon's ongoing detention.

One of the most recognizable foreign executives in Japan, Ghosn was led into Tokyo District Court in handcuffs and with a rope around his waist and was noticeably thinner.

He spoke in a strong voice and passionately declared a "genuine love and appreciation for Nissan," saying he had acted "honorably, legally and with the knowledge and approval of the appropriate executives inside the company."

The judge said his ongoing detention was justified because he poses a flight risk and could tamper with evidence if released.

His lawyers nonetheless filed a bid to end his detention, but the request, and an appeal, were both rejected.

The twists and turns since Ghosn's arrest have riveted Japan and the business world and the case is also being played out in local media, with another string of allegations leaking in the Japanese press Friday.

The Yomiuri Shimbun said US$100 million from Ghosn's "CEO reserve" was paid to sales agents in five Middle Eastern countries.

Special Reports