Tokyo prosecutors are considering pressing a fresh charge on former Nissan chief Carlos Ghosn, local media said on Wednesday (April 3), which would be the latest twist in the auto tycoons dramatic downfall.
Investigators are eyeing a possible aggravated breach of trust charge related to at least USD 32 million in Nissan funds transferred to a distributor in Oman, according to local news agency Jiji Press. Some of the money is believed to have been used to buy a luxury boat allegedly used by Ghosn and his family, according to a source familiar with the matter.
If Tokyo prosecutors were to move forward with the case, it would be the fourth criminal charge against the 65-year-old former high-flying auto executive, who denies all allegations. Ghosn already faces three charges of financial misconduct over allegations he under-reported his compensation and sought to transfer personal losses to Nissans books.
Tokyo district prosecutors are discussing the case with more senior colleagues before deciding whether to proceed, Japanese media said. If prosecutors were to file new charges, it would not necessarily mean Ghosn returns to the detention centre where he spent more than three months before winning bail on March 6, according to a local lawyer.
“The prosecutor can hit Ghosn with new charges without sending him back to prison. Prosecutors would need to again justify a detention by saying he was a flight risk and could destroy evidence and the chances seem fairly slim,” said the lawyer, who asked to remain anonymous.
The news came after it emerged that lawyers for Renault – Nissans parent company that Ghosn also led – have handed over documents to prosecutors showing “millions of euros” in payments to the firms distributors in Oman. An internal probe by Nissan, which is cooperating with prosecutors, has found Ghosn had approved over $30 million in payments to a distributor in Oman, said a person familiar with the matter .
Some of the money ended up in personal accounts, or used for purchases and investments by Ghosn – mainly to buy a yacht and make investments via his sons firm – according to this person. In a bolt from the blue that rocked Japan and the business world, Ghosn was arrested on November 19 after prosecutors stormed his private jet at a Tokyo airport and took him into custody. He spent more than 100 days in detention with limited access to lawyers before being released on bail of nearly USD 9 million.
Nissan swiftly removed him as chairman and is also expected to remove him from the board at an extraordinary shareholders meeting slated for Monday.