The Japanese automaker, Carlos Ghosn and Nissan were indicted on Monday for being allegedly charged with financial misconduct. This further deepened a crisis that had brought down the highly iconic figures of one of the global car/vehicle industry.
Ghosn and Nissan were indicted by the Tokyo prosecutors for under-reporting their income over a 5 year period and are now investigating on the allegations that the practice continued for even longer.
This sudden downfall for Ghosn started last month when he got arrested in Tokyo. He has since been expelled out as chairman of Mitsubishi Motors (MMTOF) and Nissan (NSANY). He is also temporarily replaced in the position of head of France’s Renault (RNSDF).
As said by prosecutors Greg Kelly, the former director of Nissan was also arrested in Tokyo when Ghosn was and was also indicted on Monday. These two men are alleged for being collaboratively, under-reporting Ghosn’s income in the securities filings of Nissan over a period of 5 years by about 5 billion yen ($44 million) ending in March 2015. In Japan, the maximum period of punishment for filing a false financial statement is usually up to 10 years in prison with a fine of up to 10 million yen ($89,000).
Nissan is taking this situation very seriously. The company expressing its deepest regret gave a statement. The company mentioned that making wrong disclosures in the annual security reports can cause harmful effect on the Nissan’s public disclosures integrity in the securities market.