Tokyo court rejects appeal of former Nissan chairman Carlos Ghosn
© WikiMedia (Bertel Schmitt)

Tokyo court rejects appeal of former Nissan chairman Carlos Ghosn

A Tokyo District Court denied former Nissan chairman Carlos Ghosn’s request to be released from detention Tuesday.

Tokyo authorities arrested Ghosn in November for alleged financial fraud committed while Ghosn led Nissan. Ghosn has been detained since his arrest last year.

Authorities claim that Ghosn, and his aide Greg Kelly, committed multiple acts of fraud while leading the automaker conglomerate. The allegations include misrepresenting earned salary, transferring personal investment losses to the automaker, and misuse of company funds to secure credit for personal investments.

In the court hearing, Ghosn countered that all of the transactions represented fair compensation for business completed by associates, including $14.7 million paid to Saudi businessman Khaled Al-Juffali. Prosecutors maintain the payment was repayment for a personal line of credit that Ghosn secured from Al-Juffali from 2009 to 2012. Additionally, Ghosn claimed that funds from Nissan never settled his personal investment debts.

The Tokyo District Court’s decision to keep Ghosn detained can be appealed to a higher court. If the decision holds, Ghosn could be imprisoned until a trial starts.