Carlos Ghosn Re-arrested Following New Allegation

Steph Willems
by Steph Willems
carlos ghosn re arrested following new allegation

Just yesterday, it looked as if Renault CEO and former Nissan chairman Carlos Ghosn might make it out of jail by the weekend. Japanese prosecutors had another idea, however. The industry titan was re-arrested Friday morning on suspicion of aggravated breach of trust, pushing the possibility of bail and a hotel Christmas further from the realm of possibility.

Detained since his initial Nov. 19 arrest, Ghosn is now accused of covering losses incurred through derivatives trading with Nisan funds. Those losses — totalling $16.6 million — took place in 2008.

In the five weeks since their Tokyo arrests, Ghosn and his right-hand man, Nissan board member Greg Kelly (also ousted from the automaker’s board), were indicted on charges of underreporting income to Japan’s finance ministry from 2010 to 2014, then re-arrested on suspicion of carrying out the same practice from 2015 to 2017. The shortfall in their financial reporting amounts to nearly $80 million. Ghosn was set to walk free on bail by the end of the week after Tokyo prosecutors failed in their attempt to overturn a district court ruling. Now, another period of detention seems unavoidable.

As reported by The Guardian, prosecutors stated, “The accused was responsible for managing Nissan’s overall operations and for dutifully fulfilling his role as chief executive not to cause damage to Nissan and its subsidiaries … but he took action that betrayed his role and caused financial damage to Nissan.”

Much like the others, Ghosn denies these charges. Speaking (through his lawyer) to Japanese broadcaster NHK, the executive said, “Things as they stand are absolutely unacceptable. I want to have my position heard and restore my honour in court.”

It’s believed that harsh (read: standard practice) treatment of Ghosn by Japanese authorities led the court to rule that the 64-year-old exec’s detention should end. Japanese Justice Minister Takashi Yamashita sees it differently, calling the blowback “unwarranted.” Regardless, with this new allegation, Ghosn now faces two days of questioning, and prosecutors will likely apply for a detention of 10 to 20 days.

While Alliance members Nissan and Mitsubishi quickly washed their hands of Ghosn, Renault’s staying put. To date, there’s no report of financial irregularities on the French automaker’s books. Last week, the company’s board voted to keep him on as CEO and chairman, just as Nissan handed over the dossier detailing the results of its own internal investigation.

[Image: Nissan]

Join the conversation
2 of 26 comments
  • Inside Looking Out Inside Looking Out on Dec 21, 2018

    Japanese gave Carlos slack if consider how they treated American POWs.

  • Musiccitymafia Musiccitymafia on Dec 27, 2018

    Seems the government says Ghosn and Nissan are both guilty of underreporting some money Nissan might give Ghosn at some point in the future (maybe). At that future point for tax purposes Nissan will take an expense and Ghosn will declare more income. Now a supposed internal transaction that Ghosn and Nissan agreed to 10 yrs ago pops up. Seems the government doesn't like that Nissan took the losses from a sour investment of some kind. Also just about tax rate differences? Tax attorney's from both sides will need time to sort this out.

  • Ravenuer The Long Island Expressway.
  • Kwik_Shift A nice stretch of fairly remote road that would be great for test driving a car's potential, rally style, is Flinton Road off of Highway 41 in Ontario. Twists/turns/dips/rises. Just hope a deer doesn't jump out at you. Also Highway 60 through Algonquin Provincial Park in Ontario. Great scenery with lots of hills.
  • Saeed Hello, I need a series of other accessories from Lincoln. Do you have front window, front and rear lights, etc. from the 1972 and 1976 models
  • Probert Wow - so many digital renders - Ford, Stellantis. - whose next!!! They're really bringing it on....
  • Zerocred So many great drives:Dalton Hwy from Fairbanks to the Arctic Circle.Alaska Marine Highway from Bellingham WA to Skagway AK. it was a multi-day ferry ride so I didn’t actually drive it, but I did take my truck.Icefields Parkway from Jasper AB to Lake Louise AB, CA.I-70 and Hwy 50 from Denver to Sacramento.Hwy 395 on the east side of the Sierras.