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Former Nissan boss facing new allegations, extended detainment

by Andrew Ganz

Investigators have new evidence of financial misconduct by Carlos Ghosn.

Former Nissan boss Carlos Ghosn is reportedly facing new allegations of financial misconduct that could keep the ex-executive detained through the end of the year.

Ghosn was initially arrested on November 19 for allegedly under-reporting compensation during the 2010-2014 fiscal years. Under Japanese law, a person can be detained for up to 22 days before prosecutors must either file an indictment or set them free. Based on his initial charges, two more that have been filed since, Ghosn is facing a detainment period that is scheduled to stretch through December 10.

However, Ghosn could now remain behind bars until December 30 because of new evidence suggesting even deeper financial misconduct. Investigators are now looking into Ghosn's reporting for the 2015-2017 fiscal years. The executive's creative financial reporting for those years likely pushed total board compensation beyond the cap set by company shareholders, an inside source Automotive News.

In addition to concealing $79 million in compensation over eight years, Ghosn is also accused of transferring a personal loss of $8.8 million to Nissan's books during the 2008 financial crash.

With new charges still being filed, it remains to be seen how much jail time Ghosn is facing, but the former executive is likely to serve time well beyond the month of December.