Carlos Ghosn re-arrested on new allegations

Carlos Ghosn Renault-Nissan

Japanese prosecutors arrested Nissan Motor former chairman Carlos Ghosn again on Friday on fresh allegations of making Nissan shoulder $16.6 million in personal investment losses, cutting chances he would be released on bail before Christmas.

Prosecutors also raided Ghosn’s residence in Tokyo in search of proof, broadcaster TV Asahi stated.

The recent twist in this issue that has jolted the international auto industry and Nissan’s alliance with Renault came a day after a Tokyo court unexpectedly declined prosecutors’ request to extend Ghosn’s detention.

That rejection had raised the chances that the businessman could go free on bail by Friday.

The re-arrest, however, means he could be detained for another 10 days in a Tokyo jail, where he has been confined since he was arrested in November on initial allegations of financial misconduct.

The Tokyo prosecutor stated the recent arrest was based on suspicions that around October 2008, Ghosn moved personal trades to the automaker to make it responsible for 1.85 billion yen ($16.6 million) in appraisal losses, and inflicted damage on automaker by having it deposit a total of $14.7 million on four occasions from June 2009 and March 2012 into a related bank account.

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