The head of Renault-Nissan Carlos Ghosn faces 10 years in prisonNovember 20, 2018
Top manager is accused of financial fraud and misuse of funds
The head of the Renault-Nissan-Mitsubishi alliance, Carlos Ghosn, arrested by the Japanese prosecutor’s office on suspicion of financial fraud, can be sentenced to 10 years. A top manager for several years underestimated his income in the reports for the Tokyo Stock Exchange, and also used the company’s assets for personal purposes. In particular, he paid for the purchase and repair of expensive real estate.
Carlos Ghosn was arrested at Tokyo Airport on Monday. Information about the fraud came from an anonymous source, presumably one of the employees of the legal department of Nissan, write local publications. The internal investigation revealed the involvement of another top manager, Greg Kelly, and the fact that Nissan spent billions of yen to buy real estate for Carlos Ghosn in Rio de Janeiro, Beirut, Paris and Amsterdam.
Immediately after the publication of data on violations of the Ghosn, Nissan President Hiroto Saikava demanded that the board of directors resign immediately. Mitsubishi Motors also announced that Ghosn was removed from the post of chairman of the board and the beginning of an internal investigation. Renault, represented by independent director Philippe Lagayette, announced the convening of an extraordinary meeting of board members, and French Finance Minister Bruno Le Mayor demanded that Carlos Ghosn be removed from his post as head of the French brand.
Carlos Ghosn began his career at Michelin, where he held the position of general director for the production of car tires and light truck tires. In 1996, he became the executive vice-president of Renault, and after the merger with Nissan – the president of a Japanese manufacturer. In 2016, he headed the board of directors of Mitsubishi.