Ex chairman Carlos Ghosn suspected of shifting personal investment losses to Nissan: Reports

Ex chairman Carlos Ghosn suspected of shifting personal investment losses to Nissan: Reports
Highlights

Carlos Ghosn, the former chairman of Nissan Motor Co, shifted personal investment losses incurred during the 2008 financial crisis to the automaker to avoid millions of dollars in losses himself, the Asahi Shimbun reported on Tuesday

Carlos Ghosn, the former chairman of Nissan Motor Co, shifted personal investment losses incurred during the 2008 financial crisis to the automaker to avoid millions of dollars in losses himself, the Asahi Shimbun reported on Tuesday.

Citing multiple unnamed sources, the paper said that when Ghosn's bank had called for more collateral from the executive, he instead handed the rights over the derivatives trade to Nissan, which effectively shouldered 1.7 billion yen ($15 million) in losses.

Japan's Securities and Exchange Surveillance Commission (SESC) discovered this incident during that year's routine inspection, the Asahi said.

Nissan said it could not comment on the report. An SESC spokesman said the watchdog could not comment on individual cases.

Ghosn is being held in detention in Tokyo after his arrest last week for financial misconduct, including allegedly understating his income for years. He has denied those allegations, public broadcaster NHK has reported.

Ghosn, who was unanimously voted out as chairman of Nissan last week, was also ousted as chairman of alliance partner Mitsubishi Motors Corp on Monday.

Carlos Ghosn was arrested last Monday on suspicion of financial misdoing, has denied the allegations against him, Japanese public broadcaster NHK said on Sunday.

Ghosn, who has not spoken publicly, has told investigators that he had no intention of under-reporting his remuneration on financial documents and has denied allegations against him, NHK said, without giving sources.

Greg Kelly, a former Nissan executive arrested along with Ghosn on Monday, was quoted by NHK on Saturday as defending Ghosn's compensation, saying it was discussed with other officials and paid out appropriately.

The Brazil-born tycoon, who has not spoken publicly since he was arrested last Monday, told prosecutors he did not intend to understate his income on financial reports, public broadcaster NHK said.

Without exercising his right to remain silent, Ghosn advocated his view to prosecutors, NHK said, quoting unnamed sources.

Ghosn was sacked as Nissan chairman Thursday, a spectacular fall from grace for the once-revered boss whose arrest and ouster have stunned the business world.

Prosecutors accuse Ghosn and fellow executive Greg Kelly of under-reporting the former chairman's income by around five billion yen ($44 million).Kelly also denied the allegations, saying Ghosn's salaries were paid appropriately, news reports said.

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