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Carlos Ghosn, Former Nissan Chairman, Faces New Accusations Carlos Ghosn, Former Nissan Chairman, Faces New Accusations
(about 4 hours later)
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. TOKYO — Carlos Ghosn, the former Nissan Motor chairman, was arrested again by the 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.
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.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.
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. The 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 the Japanese public broadcaster NHK. The authorities said he had transferred the investment, a derivative contract, to Nissan from his personal asset management company.
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. If he were charged and found guilty of the new accusations, Mr. Ghosn could face up to 10 years in prison. His lawyer in Japan could not be immediately 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. 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 of underreporting his compensation to the Japanese authorities.
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 and another executive, Greg Kelly, were indicted last week on charges of colluding in underreporting Mr. Ghosn’s compensation in securities filings. Nissan was also indicted on a charge of underreporting an executive’s pay in regulatory filings.
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. On Thursday, a Tokyo court unexpectedly rejected a routine request by prosecutors to extend the detention of Mr. Ghosn and Mr. Kelly for 10 more 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 Friday morning but remained in detention. Prosecutors had not yet told the court as of late Friday whether they would oppose bail, according to NHK, the public broadcaster.
While Mr. Ghosn has been charged in connection with the allegation behind his first arrest in November, it isn’t clear whether prosecutors would indict him on the subsequent arrests. At a briefing for reporters on Friday, Shin Kukimoto, deputy chief prosecutor in Tokyo, said his office had not decided whether it would indict Mr. Ghosn on the second arrest, which occurred last week and involved suspicions that he underrepresented his pay during a different time period.
It is not unusual in Japan for prosecutors to arrest the same suspect multiple times. Koichi Endo, a former prosecutor who is now a defense lawyer in Tokyo, said he had once arrested the same suspect eight times. He said one reason prosecutors might detain Mr. Ghosn and Mr. Kelly for a long time is that “normally it takes longer to investigate foreign suspects.”
“It takes three or four times longer to question and communicate with them,” Mr. Endo said.
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 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. 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.
“Nissan’s own investigation is ongoing, and its scope continues to broaden,” a Nissan spokesman said in a statement on Friday.“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 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.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.” In remarks to reporters, Takashi Yamashita, Japan’s justice minister, said that prosecutors were following the law and had conducted the questioning and the detention of the two men “appropriately.”