The Carlos Ghosn whistleblower is now facing a scandal of his own. Meet the Nissan's disgraced former chairman, who was arrested 11 months ago for underreporting his compensation.

AP Photo/Francois MoriNissan has struggled since the arrest of its former chairman, Carlos Ghosn, on charges of financial misconduct.

Nissan and its disgraced former CEO Carlos Ghosn settled their case with the SEC nearly 11 months after Ghosn was first arrested for underreporting his compensation, The New York Times reported September 24. The company will pay a $US15 million fine, and Ghosn himself will pay $US1 million, The Times reported.

Carlos Ghosn’s rise as chairman of the Renault-Nissan-Mitsubishi Alliance took years. His fall? Quicker, and greater, than any other industry executive with his calibre.

For a long time, he was known as the man who was able to usher in a new era of profitability and relevance to the automakers he helmed. Yet, to Japanese persecutors, he hid his earnings from regulators for years and used company funds to further decorate his lavish lifestyle.

Now, one of the Nissan executives who reported Ghosn has been accused of the same crimes: Hari Nada, a Nissan vice president, is facing pressure to resign after was found to have improperly overpaid himself during an investigation by an outside law firm, sources told Bloomberg October 7.

Read more: ‘I have been wrongly accused and unfairly detained’: Ousted Nissan exec Carlos Ghosn makes his first public remarks on financial misconduct allegations in Tokyo court

Prosecutors in Japan have also alleged that Ghosn earned a salary of about 10 billion yen, or $US88.7 million, from 2011 to 2015 but reported only half of that. Ghosn, 64, could face up to 10 years in prison and a fine of up to 10 million yen if found to have committed any wrongdoing.

Keep reading to learn more about the rise and downfall of Carlos Ghosn.


Ghosn started at Nissan in 1999, when “The Alliance” was formed — where Renault and Nissan each had a stake in the other. In 2016, Mitsubishi joined. The three act as separate entities, while also identifying as a global grouping.

Antonio RIBEIRO/Gamma-Rapho via Getty Images


Source:
BBC


Ghosn was known for his cost-cutting methods — closing factories and cutting jobs while increasing profits and output. Nissan quickly surpassed Honda as the No. 2 automaker in Japan under Ghosn’s leadership …

YOSHIKAZU TSUNO/AFP/Getty Images


Source:
BBC,
The New York Times


… for which he was greatly compensated. According to BBC’s review of company records, Ghosn made over $US17 million in 2017 in salary, share options and bonuses. As company success grew, so did Ghosn’s net worth. As of 2018, his net worth was around $US120 million.

Bryan Mitchell/Getty Images


Source:
BBC,
Bloomberg


Ghosn flew around the world using a series of Nissan-owned Gulfstream private jets, including a G650, which can seat up to 19 passengers, sleep up to 10, fly more than 8,000 miles, and can cost more than $US67 million.

Benjamin Zhang/Business InsiderA Gulfstream G550 similar to the aircraft used by Nissan.

As chairman of Renault, Nissan, and Mitsubishi, three car companies located on two continents halfway around the world from one another, Ghosn spent a considerable amount of time flying on Nissan’s corporate jets between France and Japan. He also had frequent stopovers in the United States, Brazil, and Lebanon.


Source:
Business Insider


According to a report from Bloomberg, Nissan paid over 8,000 euros a month for an Amsterdam apartment that was used exclusively by Ghosn.

Shutterstock/S-F


Source:
Bloomberg


And in Beirut, Nissan reportedly paid nearly $US9 million in 2012 for a salmon-hued mansion for Ghosn to live in when he travelled.


Source:
Bloomberg,


The New York Times


In Tokyo, Nissan paid nearly $US9,000 a month for Ghosn and family to live in a flat for only “few days each month on average.” But then, all of a sudden, Ghosn’s world came crashing down.

MARTIN BUREAU/AFP/Getty ImagesAn apartment building, where Nissan chairman Carlos Ghosn is believed to have a residence.

Nissan would soon begin seizing keys and blocking access from six of its properties frequented by Ghosn and his family.


Source:
Bloomberg


On November 19, prosecutors surrounded Ghosn’s Gulfstream after it touched down in Japan. Prosecutors alleged that Ghosn hid his earnings from Nissan filings for years.

Benjamin Zhang/Business InsiderA Gulfstream G550 similar to the aircraft used by Nissan for Ghosn. Ghosn’s jet not pictured.


Source:
The New York Times


On November 19, 2018, Nissan CEO Hiroto Saikawa confirmed the arrest of Ghosn after a months-long investigation into alleged financial crimes, like underreporting compensation to regulators. The Nissan board voted just two days later to remove Ghosn from his position as chairman.

REUTERS/Issei Kato


Source:
Bloomberg


A week after Ghosn’s arrest, Mitsubishi Motors Corp. Chairman and CEO Osamu Masuko announced the company would be ousting Ghosn from his role, too.

MARTIN BUREAU/AFP/Getty ImagesOsamu Masuko holds a press conference after a board meeting at the Mitsubishi Motor headquarters in Tokyo.


Source:
Bloomberg


Ghosn was reportedly kept in the same facility that previously housed death-row inmates and given limited access to the outside world. Reports indicate that he was allowed to bathe twice a week and had 30 minutes a day of exercise.

MARTIN BUREAU/AFP/Getty ImagesThis picture shows a general view of the Tokyo detention house, where Ghosn was held


Source:
Bloomberg


In a January court hearing, Ghosn denied any wrongdoing on his behalf, and said he was “wrongly accused and unfairly detained based on meritless and unsubstantiated accusations.” The next day, his detention appeal was denied.

Photo by Kyodo News via Getty ImagesA court sketch shows Ghosn making a statement during the open hearing at the Tokyo District Court on Jan. 8, 2019.


Source:
Bloomberg


On January 23, Ghosn resigned as chairman and chief executive officer of Renault, French finance minister Bruno Le Maire told Bloomberg Television in an interview at the World Economic Forum in Davos.

STEPHANE DE SAKUTIN/AFP/Getty Images


Source:
Reuters,
Bloomberg


Bloomberg reported in February that Ghosn may have used Renault funds inappropriately to “pay for his wedding party at the Chateau de Versailles” — marking the first indecency reported by the company toward its former head executive.

Dominique Charriau/WireImageCarlos and wife Carole Ghosn

Source:Town and Country Magazine, Bloomberg


At the end of February, Ghosn hired lawyer Junichiro Hironaka, who said Ghosn’s arrest was a result of a conspiracy inside Nissan. Hironaka said he believes Ghosn is innocent.

BEHROUZ MEHRI/AFP/Getty Images

“The prosecutors have made a criminal case out of an issue that should have been handled inside the company,” said Hironaka at a press conference.


Source:
The Wall Street Journal


In March, Ghosn, wearing blue workman’s clothes and a baseball cap, was released after 108 days in a Japanese jail and after paying a nearly $US9 million bail.

Reuters


Source:
Business Insider


According to The Wall Street Journal, Ghosn went to a court-approved residence in Tokyo. A trial is said to be happening later this year.

Associated Press


Source:
The Wall Street Journal


He is to have no contact with anyone outside of the country by phone or computer. “I am extremely grateful for my family and friends who have stood by me throughout this terrible ordeal,” Ghosn said in a statement released in March.

KAZUHIRO NOGI/AFP/Getty ImagesGhosn sits in a vehicle as he leaves his lawyer’s office in Tokyo, Japan on March 6, 2019.


Source:
The Wall Street Journal


Ghosn was rearrested on April 4 on new charges and then released on a $US4.5 million bail later that month.

Associated PressIn this April 3, 2019, file photo, former Nissan Chairman Carlos Ghosn, centre, returns to his residence in Tokyo. Japanese court approves release for detained Nissan ex-chair Ghosn on 500 million yen, or $US4.5 million, bail.

Source: Business Insider


Nissan is now struggling. The automaker’s first-quarter profits were down 98.5% from last year, and it announced that it will cut at least 12,500 jobs. That’s about 9% of its total workforce.

ReutersA line worker checks frames for imperfections at Nissan Motor Co’s automobile manufacturing plant in Smyrna, Tennessee. Affected workers not pictured.

Source: The New York Times,

The Wall Street Journal.


Ghosn and Nissan settled their case with the SEC on September 24. The company will pay a $US15 million fine, and Ghosn himself will pay $US1 million, the Times reported.

REUTERS/Jonathan Ernst/File PhotoA general exterior view of the U.S. Securities and Exchange Commission (SEC) building in Washington, June 24, 2011.

Source: The New York Times


Hari Nada, the Nissan senior vice president who reported Ghosn and is set to testify against Ghosn in a Japanese trial, was found to have also improperly overpaid himself during an investigation by an outside law firm on October 7.

ReutersFILE PHOTO: The logos of car manufacturers Renault and Nissan are seen in front of dealerships of the companies in Reims

Source: Bloomberg

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