Tokyo prosecutors on Thursday arrested former Nissan Motor Co. Chairman Carlos Ghosn, less than a month after he was released on bail after serving more than 100 days in custody.
The ex-auto tycoon was served a fourth arrest warrant by prosecutors over new allegations of aggravated breach of trust, news agency reported.
On Thursday morning, prosecutors entered the residence of Ghosn and took the 65-year old to their offices by car for questioning.
Sources close to the matter said Ghosn’s arrest was related to allegations he used part of Nissan’s funds which were transferred to a Nissan dealership in Oman, operated for seven years until last year by an acquaintance of his.
The fresh allegations suggest that Ghosn may have made more than $34 million in payments from a CEO reserve fund that the ex-auto tycoon had discretion over, under the pretense of sales incentives from Nissan.
Sources said that the money was then transferred from a private bank account opened in Lebanon by the Omani dealer, funnelled through an investment firm run by the Omani and sent to a company account belonging to a family member of Ghosn.
The funds are suspected by prosecutors thereafter of being used, at least in part, to purchase a 1.6-billion-yen ($14.35-million) luxury yacht for use by Ghosn’s family and others, the sources said.
Prosecutors said the once-revered auto exec had caused Nissan a loss of around 563 million yen ($5 million).
In a written statement released after being served a fourth arrest warrant Ghosn said his arrest was “outrageous” and “arbitrary.”
Ghosn’s defence team maintained that the money transferred to Oman was made at the request of his subordinates and was a permissible payment made to the dealer for his many years of service.
His team also said that the purchase of the multi-million dollar yacht has noting to do with Nissan.
Former Nissan chair ‘getting ready to tell truth’
Former Nissan Motor chair Carlos Ghosn on Wednesday said that he is “getting ready to tell the truth” about the scandal that resulted in his arrest on charges of financial misconduct.
“I’m getting ready to tell the truth about what’s happening. Press conference on Thursday, April 11,” stated a post on a newly-created Twitter account under Ghosn’s name.
The press conference would be his first public appearance since he was freed on bail last month. According to Efe news, sources at the Hironaka Law Office, which defends Ghosn, confirmed that the conference will be held on April 11, but did not specify a venue.
Ghosn, 65, was arrested in Tokyo on November 19 and was released on bail on March 6. Since then his movements, computer usage and contacts have been restricted in accordance with conditions set by the court.
He faces three charges in the courts of Japan, two of them for allegedly underreporting his pay by tens of millions of dollars. The third charge is for aggravated breach of trust of Nissan for allegedly using the company’s books to cover personal losses.
Ghosn’s lawyers on Tuesday expressed their doubts whether the trial will begin in September and also left open the possibility that the prosecution may add new charges against the former President of Nissan Motor, Renault and Mitsubishi.
According to Efe news, judicial sources leaked to local media on Wednesday the possibility of a new charge against Ghosn, also for aggravated breach of trust of Nissan over alleged irregularities in payments made to a dealership in Oman.
The report said that it wasn’t confirmed if Ghosn would have to return to jail if new charges were laid. His bail applied to the three initial formal charges.