Ghosn Indicted on Misappropriation Charge -- WSJ
April 23 2019 - 2:02AM
Dow Jones News
By Sean McLain
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 23, 2019).
TOKYO -- Carlos Ghosn was indicted Monday on charges that he
misappropriated funds sent by Nissan Motor Co. to a distributor in
the Middle East, clearing the way for him to seek release on
bail.
Tokyo prosecutors arrested the former Nissan and Renault SA
chairman April 4 -- his fourth arrest since Nov. 19. In the latest
set of charges, prosecutors allege that between 2017 and 2018 Mr.
Ghosn arranged for a company he controlled to receive a portion of
money sent by Nissan to its overseas distributor. Of a total $10
million sent by Nissan during this period, prosecutors allege Mr.
Ghosn received $5 million.
Mr. Ghosn's legal team believes this is the final charge their
client will face.
Prosecutors haven't named the distributor, but Mr. Ghosn's legal
team has identified it as Oman-based Suhail Bahwan Automobiles.
Nissan has investigated whether the Omani company helped Mr. Ghosn
obtain a yacht and whether it helped fund an investment company
partly owned by Mr. Ghosn's son, people familiar with the
investigation have said.
Mr. Ghosn's U.S.-based spokesman said that he was innocent of
the latest charges and that he expects to be vindicated.
Previously, Mr. Ghosn was charged with misstating deferred
compensation on Nissan's annual financial statements submitted to
regulators and funneling Nissan money to the business of a Saudi
friend who helped him with a personal financial problem.
Mr. Ghosn has said he had only hypothetical discussions about
future compensation. He has said Nissan paid the Saudi company for
"critical services that substantially benefited Nissan."
A Tokyo court had authorized Mr. Ghosn's detention without
possibility of bail through Monday. By indicting him, prosecutors
can keep him behind bars for the moment, but Mr. Ghosn can seek
release on bail. In the absence of an indictment, Mr. Ghosn would
have automatically been released.
His lawyers have said Mr. Ghosn isn't a flight risk, and they
have said the terms of his previous release on bail, including a
ban on computer use outside his lawyer's office, ensured that he
couldn't destroy evidence. Mr. Ghosn had been out on bail of nearly
$9 million for about a month before his latest arrest.
Mr. Ghosn's lawyers applied for bail again on Monday, a few
hours after he was indicted on the latest charges. The court will
hear Mr. Ghosn's request for bail on Tuesday.
After the most recent arrest, Mr. Ghosn was interrogated for 72
hours over a 17-day period, according to a blog post by one of his
lawyers, Takashi Takano. As is typical in Japan, the interrogation
occurred without the presence of Mr. Ghosn's lawyers. Mr. Takano
said the legal team filed a complaint with prosecutors because Mr.
Ghosn was forced to sit through interrogation sessions, often two
or three times a day, despite making clear that he intended to
remain silent.
Critics of Japan's judicial system -- including Mr. Ghosn's
legal team -- have said prosecutors use these tactics to force a
confession out of suspects. Japanese authorities have said Mr.
Ghosn is receiving normal treatment and the goal of the
interrogation is to find out the facts, not to compel a
confession.
Should Mr. Ghosn fail to receive bail, he will face a
potentially long period of solitary confinement. Japan has a 10-day
holiday starting Saturday surrounding the May 1 enthronement of a
new emperor. Detainees are permitted 30 minutes outdoors on
weekdays but generally not when the jail is on weekend or holiday
staffing.
During a previous period of confinement during Japan's New Year
holidays, Mr. Ghosn was unable to leave his cell for six days, his
wife, Carole, said in an interview.
Mr. Ghosn's lawyers have said a long period of confinement risks
worsening a kidney condition that requires daily exercise to
manage.
--Chieko Tsuneoka contributed to this article.
Write to Sean McLain at sean.mclain@wsj.com
(END) Dow Jones Newswires
April 23, 2019 02:47 ET (06:47 GMT)
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