Ghosn property deals may have led to arrest

Nissan paid “huge sums” for Carlos Ghosn’s residences in four cities around the world where there were no business justifications, Japanese broadcaster NHK reported, as questions swirled over what led to the dramatic downfall of one of the world’s most recognizable executives.

Tokyo prosecutors confirmed Tuesday that the Nissan chairman, along with representative director Greg Kelly, was arrested for failing to declare some 5 billion yen ($44 million) in Ghosn’s income on Nissan’s securities reports submitted over five years starting from 2011.

Prosecutors did not give specifics of the allegations, and Nissan CEO Hiroto Saikawa declined to give details on the expected charges at his impassioned late-night press conference in Yokohama, outside of Tokyo, citing the ongoing criminal investigation.

But some details of the investigation have started to leak via the Japanese media. The allegations reported against Ghosn include:

• Nissan paid “huge sums” to provide Ghosn with residences outside Japan, according to a report by NHK which cited unidentified people.
• Nissan did not disclose in its official securities reports to the Tokyo Stock Exchange that it had provided Ghosn with the homes, NHK said.
• The residences, located in Rio de Janeiro, Beirut, Paris and Amsterdam, had “no legitimate business reason” and Ghosn was not paying at least some of the rent.

Separately Nikkei, citing unidentified people familiar with the matters, said that Ghosn may have used money meant for investment to buy real estate for himself via overseas units. Saikawa said on Monday that Ghosn had both understated income and misused company funds, including expenses and investment funds

Nissan was not available for comment on the reports when contacted by Bloomberg News, and attempts to obtain comment from Ghosn or his representatives were unsuccessful.

Airport arrest

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