What people are talking about now
Former Nissan CEO Carlos Ghosn settles SEC charges over $140 million in undisclosed compensation
So How Much Did Carlos Ghosn Siphoned From Morocco?
Carlos Ghosn, arrested in November 2018 in Japan for « aggravated breach of trust » and released on bail last spring, « agreed to pay a civil fine of $ 1 million and is prohibited, for 10 years, to be a leader of a company (listed) or a member of the board of directors of a company listed on the stock exchange of New York, the SEC said in a statement.
The U.S. Securities and Exchange Commission accused Carlos Ghosn of having concealed, with the help of one of his lieutenants, more than 140 million dollars in compensation and retirement indemnity. (With AFP)
The U.S. Securities and Exchange Commission settled charges Monday against former Nissan CEO Carlos Ghosn and former director Gregory Kelly over false financial disclosures that omitted more than $140 million in total compensation.
Ghosn, with substantial assistance from Kelly and others, attempted to conceal more than $90 million of his pay from 2009 until his arrest in Tokyo in November 2018, according to the SEC. The scheme also included increasing Ghosn’s pension by more than $50 million.
The commission said Nissan omitted more than $140 million in undisclosed compensation and retirement benefits for Ghosn in its financial disclosures. The sum was never paid to Ghosn, the SEC stated.
Ghosn and Kelly “crafted various ways to structure payment of the undisclosed compensation after Ghosn’s retirement, such as entering into secret contracts, backdating letters to grant Ghosn interests in Nissan’s Long Term Incentive Plan, and changing the calculation of Ghosn’s pension allowance to provide more than $50 million in additional benefits,” the SEC said in a statement.
The commission charged Nissan with violating anti-fraud provisions, which the company settled by agreeing to pay a $15 million civil penalty. The SEC also accused Ghosn of violating the securities laws and Kelly with aiding the violations.
Ghosn reached a civil settlement with the agency and acceded to a $1 million civil penalty and a 10-year bar from serving as an officer or director of a public company. Kelly agreed to a $100,000 penalty, a five-year officer and director bar and a five-year suspension from appearing before the commission as an attorney.
“Simply put, Nissan’s disclosures about Ghosn’s compensation were false,” said Steven Peikin, co-director of the SEC’s division of enforcement. “Through these disclosures, Nissan advanced Ghosn and Kelly’s deceptions and misled investors, including U.S. investors.”
Meanwhile, Nissan, Ghosn, and Kelly all settled without admitting or denying such allegations and findings, the SEC stated.
The former CEO’s defense team said in a statement, “We are pleased to have resolved this matter in the U.S. with no findings or admission of wrongdoing.”
They also added that the SEC conducted its investigation simultaneously with the ongoing Japanese criminal proceedings. “The SEC settlement expressly permits Mr. Ghosn to continue to contest and deny the factual and legal allegations against him in the criminal proceedings in Japan, and Mr. Ghosn fully intends to do so.”Ghosn and his team “remain confident that, if given a fair trial, he will be acquitted of all charges and fully vindicated.”
Carlos Ghosn Claimed Conspiracy and Rivalry as the Real Culprit
Carlos Ghosn said in a video message recorded shortly before his last arrest that he was the victim of a « conspiracy » by Nissan executives who felt that a possible convergence or merger with Renault would threaten Nissan’s autonomy.
Additionally, Carlos Ghosn is reported to have launched a lawsuit against Nissan and Mitsubishi after he was removed as chairman of the Alliance last year on charges of financial misconduct.
Dutch newspaper NRC reports Ghosn is seeking €15 million (£13.5m) in damages in a case in the Netherlands, with his lawyer claiming proper procedure wasn’t followed when the two Japanese companies ousted their chairman.
Source: James Attwood –23 July 2019
Ex-Nissan boss Ghosn released on bail, but barred contact with wife
KYODO NEWS – Apr 26, 2019 – 07:40 |
Former Nissan Motor Co. Chairman Carlos Ghosn was released Thursday on bail, after he was indicted for the fourth time at the start of the week over alleged misuse of company funds, under stricter conditions that include being banned from contact with his wife without court approval.
Ghosn, with a tight expression on his face left a detention facility with his lawyer around 10:20 p.m., wearing a dark suit and not disguised as a worker like when he was first released in early March.
Ghosn wordlessly got in a waiting black Toyota van as a large press group numbering more than a hundred observed him, moving the next stage of his battle with prosecutors to the courtroom after possibly months of preparations.
In making the decision, the Tokyo District Court recognized it could not completely foreclose the possibility of concealment of evidence by granting him bail, a source familiar with the situation said. However, it apparently believed that detaining him longer would negatively impact his defense preparation and health.
Tokyo prosecutors have told the court that his wife Carole has contacted individuals related to the allegations.
« Restricting communications and contact between my wife and me is cruel and unnecessary, » Ghosn said in a statement. « We love each other very much, she answered all of the prosecutors’ questions in court, and she has done nothing wrong. »
He also reasserted his innocence and his commitment to vigorously defend himself against « these meritless and unsubstantiated accusations. »
Ghosn has already made the 500 million yen ($4.5 million) bail payment. The prosecutors appealed the court decision but their appeal was rejected, paving the way for his release from the Tokyo Detention House hours later.
He later entered a Tokyo hotel, instead of the designated apartment where he lived with his wife during the previous release.
Following his initial arrest in mid-November over allegations of underreporting his remuneration, the ousted chairman was released in early March on 1 billion yen bail. The 65-year-old was then rearrested on April 4.
The bail conditions set by the court again require that he remain in Japan, said a source knowledgeable on the matter.
The prosecutors have told the court that they are concerned about concealment of evidence.
Ex-Renaut Nissan boss Carlos Ghosn re-arrested while he was on bail. The former Renault-Nissan boss Ghosn has been arrested in Japan for a fourth time.
Ghosn has denied all the allegations against him.
Ghosn’s first release was conditional on 15 stipulations such as not contacting people related to the allegations including Nissan executives, having a security camera installed at the entrance of his residence in Tokyo and restricted use of mobile phones and computers.
Ghosn’s defense lawyer, Junichiro Hironaka, said he is « glad » his client was released, adding there was some concern as the prosecutors were « extremely opposed » to it.
The Ghosn case has drawn international attention to Japan’s criminal justice system, which some have called « hostage justice. » Critics say the system enables authorities to hold alleged offenders in difficult conditions for long periods of time in hopes of soliciting an admission of guilt.
After his first arrest, Ghosn was repeatedly denied bail and, as is common in Japan, was not permitted to be accompanied by a lawyer while being interrogated.
Critics also say the practice of prolonging detention by incrementally adding charges enables suspects to be denied the chance to file for bail. Ghosn was released on bail of 1 billion yen on March 6 after more than 100 days in detention.
In the latest indictment, Ghosn is accused of having a Nissan subsidiary in the United Arab Emirates pay a total of $10 million to a distributor in Oman between July 2017 and last July, and having $5 million of that transferred to a savings account at a Lebanese investment firm that Ghosn effectively owns.
Sources close to the case have said it is alleged that part of the money was then channeled to the company of Ghosn’s wife, where a portion may have gone toward the purchase of a luxury yacht worth 1.6 billion yen mainly for use by the family.
Ghosn is already preparing to defend himself against charges that he violated the financial instruments law by underreporting his remuneration by 9.1 billion yen in Nissan’s securities reports presented to Japanese regulators over the eight years through March last year.
He has also been indicted over a separate aggravated breach of trust in relation to the alleged transfer of private investment losses to Nissan’s books in 2008 and for paying $14.7 million in company funds to a Saudi businessman who extended credit to him.
Nissan said Monday it had filed a criminal complaint against Ghosn over the latest allegation, saying in a statement the payments to the Omani distributor were directed by Ghosn not for business but for personal purposes.
Ghosn was removed from the chairmanship posts at Nissan and its partners Renault SA and Mitsubishi Motors Corp. after his first arrest on Nov. 19. He has also been replaced as CEO of Renault.
Ghosn has remained silent during questioning by the prosecutors, according to his defense team.
Ghosn, who was on bail awaiting trial over allegations of financial misconduct, has been accused by Renault of “questionable and concealed practices.” The company said it would stop the ex-auto titan’s pension, worth around $860,000 a year. Ghosn took to Twitter this week to announce he’s planning a press conference to “tell the truth about what’s happening.”
Carlos Ghosn is Driven Out of the Leader Seat
Ghosn accused of Siphoning Funds for Houses:
Nissan’s board voted unanimously to dismiss President Carlos Ghosn from his post following his arrest on Monday. Ghosn is suspected of financial misconduct and has hijacked at least $ 44 million over the last five years to buy personal residences and enrich his sister, reports the Wall Street Journal. Ghosn reportedly used a Dutch subsidiary to inject $ 18 million into the purchase and renovation of personal housing in Rio de Janeiro and Beirut. He is also accused of illegally channeling money to his sister for consulting jobs she did not perform. Ghosn led the Nissan-Renault-Mitsubishi global alliance.
Ghosn is also suspected of paying his older sister as much as $100,000 annually, a total of $1.7 million over the years, for an advisory contract, although she did no work for the company, Japanese newspaper The Asahi Shimbun reported.
In one instance, Ghosn’s sister got $60,000 for advising on the housing in Rio de Janeiro, the Journal reported.
Nissan to cut 12,500 jobs as net profit tanks 94.5% in April-June-Kyodo News
Nissan Motor Co. said Thursday it will cut 12,500 jobs in the next three years to boost restructuring as it reported a 94.5 percent plunge in net profit for the April-June quarter due to weak U.S. sales.
Jobs will be slashed at 14 loss-making factories overseas including in Indonesia and Spain by the end of March 2023, and the figure, up from 4,800 announced in May, represents around 10 percent of its total workforce.
At a press conference at Nissan’s headquarters in Yokohama, CEO Hiroto Saikawa declined to name the other locations subject to job cuts due to the sensitivity of the matter.
Saikawa said the personnel reduction, which will be implemented as the automaker plans to scale back its global production capacity by 10 percent by late March in 2023, is expected to boost profitability.
Nissan is aiming for sales of 14.5 trillion yen ($134 billion) in fiscal 2022 compared with the current 13 trillion yen.
In the three months ended June 30, the carmaker posted a group net profit of 6.38 billion yen, down sharply from 115.83 billion yen in the same period last year.
In the quarter, Nissan said its group operating profit fell 98.5 percent to 1.61 billion yen on sales of 2.37 trillion yen, down 12.7 percent.
« The first-quarter results were worse than expected, » Saikawa told the news conference. « I hope in two years’ time we will return to recovery. »
The automaker maintained its earnings forecasts for the full business year through March.
Nissan expects its group net profit to fall 46.7 percent to 170 billion yen and its group operating profit is projected to decline 27.7 percent to 230 billion yen on sales of 11.3 trillion yen, down 2.4 percent.
The automaker has been reviewing the expansionist business strategy spearheaded by former Chairman Carlos Ghosn, who was arrested in November in Japan over alleged financial misconduct.
Video PR: Interview, Presentation and Lecture by Carlos Ghosn
In this talk, he discusses the different challenges each company faces, and how he adapts his leadership to the strategic and cultural contexts. He also discusses trends in the global auto market, and his vision for zero emission vehicles (electric), which he believes will represent an important (and profitable) market segment in the coming decade. [Recorded: Jan. 11, 2010]
A discussion with Carlos Ghosn, Chairman and CEO, Renault-Nissan Alliance moderated by Professor Robert Burgelman, Stanford Graduate School of Business. [Recorded in April 2013]
During a student-led interview at Stanford Graduate School of Business, Carlos Ghosn, CEO of Renault-Nissan Alliance, discusses his experience leading this global automobile alliance and its subsequent innovations. [Recorded in January 2014]
Carlos Ghosn Past:
Born in Brazil on March 9, 1954 to Lebanese parents, Ghosn finished his early education in Lebanon and moved on to Paris for his higher education. He spent an illustrious career in Michelin where he spent 18 years in Brazil and North America.
In 1999, Carlos Ghosn was sent to Tokyo by France’s Renault SA to rescue its floundering Japanese business partner, Nissan Motor. In several bold moves unseen in Japanese car manufacturing history, Ghosn began his work. He slashed costs, closed unprofitable factories, shrank the supplier network, sold unprofitable assets, and rewired Nissan’s known insular culture. Many automotive insiders thought that Ghosn’s efforts will simply backfire and will not work. They were wrong. Within a year, Ghosn had returned Japan’s second-largest auto manufacturer to profitability and was widely credited with saving it from collapse. Ghosn is now widely known as the CEO who led on of modern corporation’s dramatic turnarounds.
As leader of one of the world’s most profitable companies, Ghosn surged ahead with Nissan aggressively going into emerging markets such as Brazil, China, India, Russia, and Southeast Asia and shifted production of many core models outside Japan. He has invested heavily to develop affordable zero-emission vehicles, including the Nissan LEAF, which was launched in 2010, and a full lineup of Renault electric vehicles.
Source: Kyla Camille | March 14, 2016
Apr 26, 2019 | KYODO NEWS