Nissan: 'Deepest Regret' as It's Charged in Ex-CEO's Scam

Carlos Ghosn, the former chair, and exec Greg Kelly have been charged, as has company itself
By Newser Editors and Wire Services
Posted Dec 10, 2018 8:03 AM CST
Nissan: 'Deepest Regret' as It's Charged in Ex-CEO's Scam
In this Nov. 21, 2018, photo, a man walks near Nissan Motor Co. headquarters in Yokohama, near Tokyo.   (AP Photo/Eugene Hoshiko)

Tokyo prosecutors have charged Nissan's former chairman Carlos Ghosn, another executive, and the automaker itself for allegedly underreporting income. The charges imposed Monday involve allegations Ghosn's pay was underreported by about $44 million between 2011 and 2015, per the AP. The prosecutors said earlier that the allegations were the reason for Ghosn's arrest on Nov. 19. The prosecutors issued statements also outlining new allegations Monday against Ghosn and Greg Kelly, the other executive. The fresh allegations are of underreporting another $36 million in 2016-2018. Nissan as a company wasn't mentioned in the latest allegations; in Japan, a company can be charged with wrongdoing. Some kind of action by the prosecutors had been expected, as the detention period allowed for the allegations disclosed earlier was to end on Monday.

Nissan Motor Co. confirmed the charges against it in a statement, noting, "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." Kelly, 62, is suspected of having collaborated with Ghosn. Kelly's attorney in the US says he's asserting his innocence, noting that insiders at Nissan said the procedure was legal. Ghosn hasn't commented. Ghosn was ousted as Nissan chairman, and Kelly lost his representative director title, following their arrests, but they both remain on Nissan's board pending a shareholders meeting. Meanwhile, the SEC said it had filed criminal complaints against Ghosn, Nissan, and Kelly. A commission official said Monday that the three parties were suspected of falsifying reports on millions of dollars' worth of Ghosn's income. (More Nissan stories.)

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