Tokyo Prosecutors Indict Both Ghosn, Nissan

Tokyo Prosecutors Indict Both Ghosn, Nissan

Nissan Motor Co. may have booted out disgraced chairman Carlos Ghosn from the company, but that didn't save the Japanese car company from getting charged by Tokyo prosecutors for its involvement in the chairman's financial misconduct.

Nissan, along with Ghosn and close aide Greg Kelly, were indicted for alleged inaccurate reporting of Ghosn's compensation by tens of millions of dollars in the company's financial filings over five years, the Japanese media reported.

Both Ghosn and Kelly were also re-arrested because of the new indictment, thus extending their incarceration in Japan.

Nissan, as a corporate entity, was also charged for its alleged role in submitting financial statements that understated Ghosn’s compensation. The company confirmed its own indictment in an official statement, vowing to improve compliance as it attempts to leave its latest scandal behind.

The following is an official statement issued Monday, December 10, by Nissan Motor Co. Ltd.

"Today, Nissan Motor Co., Ltd.’s former Representative Director and Chairman Carlos Ghosn and former Representative Director Greg Kelly were indicted for violating the Japan Financial Instruments and Exchange Act, namely making false disclosures in annual securities reports. "Nissan, as a legal entity, was also indicted for the same violation. "Nissan takes this situation extremely seriously. 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. "Nissan will continue its efforts to strengthen its governance and compliance, including making accurate disclosures of corporate information."

You may access the statement here.

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