Nissan chairman Carlos Ghosn arrested in Tokyo
© WikiMedia (Bertel Schmitt)

Nissan chairman Carlos Ghosn arrested in Tokyo

Authorities in Tokyo on Monday arrested Carlos Ghosn, chairman of Nissan Motor Co., for alleged financial misconduct related to suspicion of violating a financial law.

Ghosn was initially interviewed by the Tokyo District Public Prosecutor’s Office regarding a whistleblower probe conducted internally by Nissan. The investigation concluded that Ghosn under reported his income by reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in addition to a numerous other acts of misconduct, and was subsequently arrested.

Prosecutors also arrested Greg Kelly, a Nissan representative director, who was found to have been deeply involved with Ghosn for many years in the alleged misrepresentation of their compensation in the Tokyo Stock Exchange securities report. Ghosn and Kelly are also alleged to have used company assets for personal use, and misrepresented the spending of the company’s investment, among other numerous acts of significant misconduct Nissan said in their press conference.

In jeopardy is Ghosn’s legacy as someone who was able to successfully bring together three automakers, Renault, Mitsubishi and Nissan, to work productively with each other, a rarity in the auto industry. He is also a cult hero in Japan, where a comic book about his life became a best-seller because of his work saving Nissan.