On Monday, Nissan Motor Inc. declared it had filed a criminal suit against ex-chairman Carlos Ghosn. The complaint refers to an aggravated breach of trust under Japan’s Companies act. It is the latest chapter of the matter, which launches a fourth charge against Mr Carlos. As per the company, the former chairman used the company’s shares for his personal growth. The Yokohama-based carmaker claims it found that Nissan made payments to a foreign vehicle sales company through a subsidiary. Nissan said those payments were made under the influence of Ghosn, and were not essential from a business point of view. In short, the payments were for the personal enrichment of Mr Carlos.
Nissan said such misbehaviour is not at all acceptable, and it will appeal for some strict penalties. Tokyo prosecutors are now preparing to charge Ghosn on the most substantial charges yet. More probably, the claims could include money flows tied to a distributor in Oman. Thus, a new round of charges may retain Ghosn in jail. Today Mr Carlos may experience alleges for aggravated breach of trust. Though, the ex-chairman denies accepting the claims filed against him. The latest assert arrives after officials arrested him earlier this month. Ghosn already faces three other allegations referred to underreporting income and transferring personal investment losses to Nissan. The carmaker said it had taken the hapless situation very seriously. Even more, Nissan expressed sincere regrets for any concerns faced by its shareholders.
A representative of the company said Ghosn’s misconduct had harmed the company. Before few weeks, Ghosn paid $9 million for bail, after spending 108 days in jail. His defence team has started a public battle against Tokyo’s lawmakers. They say the latest arrest is illegal. It could be difficult for Ghosn to prepare for a trial along with another lengthy stay in prison. He might have limited access to the attorneys.