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Carlos Ghosn, Former Nissan Chairman, Faces Setback in Japan Carlos Ghosn, Former Nissan Chairman, Faces New Accusations
(about 3 hours later)
TOKYO — Carlos Ghosn, the former Nissan Motor chairman, was re-arrested on Friday on charges of breach of trust, making it increasingly unlikely he would soon be released from a Tokyo jail. TOKYO — Carlos Ghosn, the former Nissan Motor chairman, was arrested again by Japanese authorities on Friday, this time on suspicion that he shifted more than $16 million in personal losses incurred a decade ago to the automaker.
Mr. Ghosn had taken a step toward being released on bail on Thursday, when a Tokyo court rejected a routine request by prosecutors to extend his detention for another 10 days. The move on Friday gives Japanese authorities the ability to ask a court to extend Mr. Ghosn’s detention again. The rearrest of Mr. Ghosn dealt a setback to his hopes for getting released from the Tokyo jail where he has been held for more than a month on different charges. It also adds to the legal problems of an executive who once oversaw a sprawling automotive global empire that sold more than 10 million cars last year.
Mr. Ghosn, once one of the auto industry’s most powerful executives, has spent more than a month in a Tokyo jail. He and another former Nissan executive, Greg Kelly, were arrested on Nov. 19 and have since been indicted on charges that they colluded in underreporting Mr. Ghosn’s compensation in securities filings. Japanese authorities rearrested Mr. Ghosn on suspicion of breach of trust related to a financial investment that tumbled in value during the 2008 global financial crisis, according to NHK, the Japanese public broadcaster. Authorities said he transferred the investment, a derivative contract, to Nissan from his personal asset management company. Mr. Ghosn’s Japanese lawyer could not immediately be reached for comment.
Mr. Kelly, a former Nissan human resources manager, applied for bail on Friday morning. The rearrest essentially gives Japanese prosecutors another chance to keep Mr. Ghosn in jail. He has been at the same detention center since Nov. 19, when law enforcement officials descended on a corporate jet after it landed and arrested him on suspicion that he underreported his compensation to Japanese authorities.
The new arrest of Mr. Ghosn stems from suspicions that he shifted personal investment losses of about $15 million stemming from the 2008 global financial crisis onto Nissan’s books, according to NHK, the Japanese public broadcaster. Mr. Ghosn’s Japanese lawyer could not immediately be reached for comment. Mr. Ghosn and another executive, Greg Kelly, were indicted last week on charges that they colluded in underreporting Mr. Ghosn’s compensation in securities filings. Nissan itself was also indicted on a charge of underreporting an executive’s pay in regulatory filings.
On Thursday, a Tokyo court unexpectedly rejected a routine request by prosecutors to extend the detention of Mr. Ghosn and Mr. Kelly for another 10 days to continue questioning them. That opened the possibility that they could be released on bail. Mr. Kelly, an American and a former Nissan human resources manager, applied for bail on Friday morning.
Mr. Ghosn’s rearrest on Friday gives prosecutors two days to ask a court to keep Mr. Ghosn in jail for another 10 days. They could also ask for another 10 days after that.
The detention of the two auto executives has stirred mounting international criticism. Mr. Kelly’s family has appealed to American and Japanese officials to help secure his release so that he could have surgery to treat a spinal condition.The detention of the two auto executives has stirred mounting international criticism. Mr. Kelly’s family has appealed to American and Japanese officials to help secure his release so that he could have surgery to treat a spinal condition.
The drama of their detention, which followed an arrest at Haneda airport in Tokyo shortly after the men landed in corporate jets, has riveted the Japanese news media. Mr. Ghosn, 64, who was credited with rescuing Nissan nearly two decades ago, was until recently a corporate star here. His downfall, as well as an expanding narrative of corporate intrigue and backstabbing, has been followed avidly. The drama of their detention has riveted the Japanese news media. Mr. Ghosn, 64, who was credited with rescuing Nissan nearly two decades ago, was until recently a corporate star here. His downfall, as well as an expanding narrative of corporate intrigue and backstabbing, has been followed avidly.
The case has roiled a carmaking empire that includes Renault in France, which owns a 43 percent stake in Nissan. Together they are in an alliance with Mitsubishi Motors of Japan, making up a global juggernaut that sold more than 10 million cars last year. Until his arrest last month, Mr. Ghosn ruled over the alliance. The case has roiled a carmaking empire that includes Renault in France, which owns a 43 percent stake in Nissan. Together they are in an alliance with Mitsubishi Motors of Japan. Until his arrest last month, Mr. Ghosn ruled over the alliance.
On Thursday, a Tokyo court rejected a routine request by prosecutors to extend the men’s detention for another 10 days, to continue questioning them about allegations that they had understated Mr. Ghosn’s compensation over a period of years. “Nissan’s own investigation is ongoing, and its scope continues to broaden,” a Nissan spokesman said in a statement on Friday.
On Friday morning, hours before Mr. Ghosn was re-arrested, Japanese journalists started lining up at the Tokyo detention center where the men have been held. Close to 30 people requested to see them but were quickly denied. On Friday morning, hours before Mr. Ghosn was rearrested, Japanese journalists started lining up at the Tokyo detention center where the men have been held. Close to 30 people requested to see them but were quickly denied.
Under Japanese law, courts can approve prosecutors’ requests to detain suspects for up to 23 days after an arrest before charging them with a crime. After suspects are indicted, prosecutors can continue to detain them unless a court approves a request for bail.Under Japanese law, courts can approve prosecutors’ requests to detain suspects for up to 23 days after an arrest before charging them with a crime. After suspects are indicted, prosecutors can continue to detain them unless a court approves a request for bail.
In remarks to reporters, Takashi Yamashita, Japan’s justice minister, said that prosecutors were following the law and have conducted questioning and the detention of the two men “appropriately.”