Nissan Chm. Ghosn Nabbed for Allegedly Underreporting Pay
Tokyo, Nov. 19 (Jiji Press)--Japanese prosecutors arrested Nissan Motor Co. <7201> Chairman Carlos Ghosn on Monday for allegedly violating the Financial Instruments and Exchange Act by underreporting his executive remuneration by about 5 billion yen.
The special investigation squad of the Tokyo District Public Prosecutors Office also arrested Nissan representative director Greg Kelly. The squad stopped short of clarifying whether Ghosn, 64, and Kelly, 62, have admitted to their allegations.
In the five years to March 2015, Ghosn received about 9,998 million yen in executive remuneration. Ghosn and Kelly are suspected of falsely reporting in financial statements that the Nissan leader received 4,987 million yen in the period and submitting the documents to the Kanto Local Finance Bureau in the city of Saitama, north of Tokyo.
After receiving a whistleblowing report, Nissan conducted an internal investigation for months and found several cases of serious wrongdoing by Ghosn, such as misappropriating company money for his private purposes, in addition to the underreporting of his executive pay. Nissan also detected Kelly's deep involvement in Ghosn's misconduct.
The major Japanese automaker reported these findings to the prosecutors office.
[Copyright The Jiji Press, Ltd.]