Court extends detention for Nissan ex-chair Ghosn by 10 days

Legal Issues

Former Nissan chairman Carlos Ghosn will be detained at least through Jan. 11, the Tokyo District Court said Monday, as the once revered auto industry figure faces allegations that have marked a stunning downfall.

Ghosn, who led Nissan Motor Co. for two decades and helped save the Japanese automaker from near bankruptcy, was arrested Nov. 19 on suspicion of falsifying financial reports. He also faces a breach of trust allegation, for which his detention had been approved previously through Jan. 1.

The Tokyo District Court said in a statement that it had approved prosecutors' request for a 10-day extension.

Ghosn has been charged in the first set of allegations, about under-reporting Ghosn's pay by about 5 billion yen ($44 million) in 2011-2015.

Those close to Ghosn and his family say he is asserting his innocence as the alleged underreported amount of money was never really decided or paid, and Nissan never suffered any monetary losses from the alleged breach of trust.

It is unclear when Ghosn may be released on bail. Tokyo prosecutors consider Ghosn, a Brazilian-born Frenchman of Lebanese ancestry, a flight risk.

In Japan, formal charges can mean a suspect will get detained for months, sometimes until the trial starts, because of fears of tampered evidence.

Another Nissan executive, Greg Kelly, was arrested on suspicion of collaborating with Ghosn on the under-reporting of income and was freed Dec. 25 on 70 million yen ($635,600) bail after more than a month of detention.

Kelly said in a statement released through his lawyers he had suffered while in detention because of his neck ailment and hoped to get medical treatment. He also said he was innocent and hoped to regain his reputation.

"I expect that the trial will start soon. I have not been involved in alleged false entry. I believe my innocence will be revealed in the trial," Kelly said.

Falsifying financial reporting is a serious crime in Japan, with a maximum penalty of 10 years in prison, a 10 million yen ($89,000) fine, or both. But some experts are puzzled that the allegations against Kelly and Ghosn are about underreporting income from Nissan. Nissan is in charge of filing such financial reports, not individual executives.

Past cases of companies and officials getting charged in Japan with falsifying such reports tend to be about misrepresenting company profits or other numbers that relate to the overall operations of the business, not executive compensation.

Related listings

  •  Prominent Chinese rights lawyer tried in closed proceedings

    Prominent Chinese rights lawyer tried in closed proceedings

    Legal Issues 12/24/2018

    The trial of a prominent human rights lawyer began in northern China on Wednesday with about two dozen plainclothes officers stationed outside a courthouse and at least one supporter taken away by police.Reporters, foreign diplomats and supporters we...

  • Fight over report on Wynn allegations back in court Jan. 4

    Fight over report on Wynn allegations back in court Jan. 4

    Legal Issues 12/18/2018

    The fight over a Massachusetts Gaming Commission report on allegations of sexual misconduct against former casino mogul Steve Wynn will be back in a Nevada courtroom next month.Clark County District Judge Elizabeth Gonzalez on Thursday set a Jan. 4 c...

  • Colorado baker returns to court over 2nd LGBT bias allegation

    Colorado baker returns to court over 2nd LGBT bias allegation

    Legal Issues 12/16/2018

    U.S. Supreme Court — argued in federal court Tuesday that the state is punishing him again over his refusal to bake a cake celebrating a gender transition.Lawyers for Jack Phillips, owner of Masterpiece Cakeshop in suburban Denver, are suing to...

Is Now the Time to Really Call a Special Education Lawyer?

IDEA, FAPE, CHILD FIND and IEPs: The Individuals with Disabilities Education Act (IDEA) guarantees all children with disabilities to a free appropriate public education (FAPE). FAPE starts with a school’s responsibility to identify that a child has a disability (Child Find) and create an Individualized Education Program (IEP) to suit the needs of the child. Parents need to be persistent, dedicated and above all else aware of the many services and accommodations that their child is entitled to under the law. As early as this point within your child’s special education, many parents will often find themselves in the situation asking, “is now the time to really call a special education lawyer?” Here are a few things to consider when asking yourself that question.

Business News

New York Adoption and Family Law Attorneys Our attorneys have represented adoptive parents, birth parents, and adoption agencies. >> read
DuPage IL worker's comp lawyers Since 1962, the law firm of Krol, Bongiorno & Given, Ltd. has been a leader in the field of workers’ compensation law in DuPage, Illinois. >> read