Carlos Ghosn, Nissan charged for financial misconduct

Tokyo prosecutors indicted ousted Nissan Motor chairman Carlos Ghosn for under-reporting his earnings and also formally charged the automaker, making the firm guilty for the financial misconduct scandal that has surprised the industry.

Ghosn was arrested on November 19 on suspicion of conspiring to understate his income by about half of the actual 10 billion yen ($88 million) during five years from 2010.

He has been held in a Tokyo jail since then for investigation, but had not been officially charged before today. Prosecutors re-arrested him on Monday on new allegations of understating his earnings for three more years through March 2018.

Nissan, which eliminated Ghosn as chairman days following his arrest, has stated the misconduct was masterminded by the once-celebrated executive with assistance of former Representative Director Greg Kelly, who was as well indicted for the first time on Monday.

Ghosn and Kelly have not issued any statement through their lawyers, however Japanese media reported that they have rejected the allegations.

Nissan, indicted for filing misleading financial statements, stated it takes the charge seriously.