Business / Corporate

Tokyo court rejects complaint filed by Ghosn's close aide over detention

Kyodo

The Tokyo District Court rejected Wednesday a complaint filed by a close aide of former Nissan Motor Co. Chairman Carlos Ghosn against the court’s latest decision to further extend his detention period over an alleged case of financial misconduct.

Greg Kelly, a former Nissan representative director who was first arrested on Nov. 19, was served a fresh arrest warrant along with Ghosn on Monday for allegedly conspiring to understate Ghosn’s remuneration by ¥4.27 billion in securities reports in the three years through March 2018.

The Tokyo District Court approved the detention of Ghosn and Kelly for 10 more days on Tuesday. Ghosn’s lawyer filed an appeal against the decision but it was turned down the same day.

The pair’s detention period for their initial arrest was due to expire Monday. The fresh arrest warrants allow prosecutors to keep them in custody at the Tokyo Detention House and to interrogate them further.

Ghosn and Kelly are suspected of violating the Financial Instruments and Exchange Act by underreporting Ghosn’s compensation.

They were arrested last month and indicted Monday for failing to report about ¥5 billion of Ghosn’s ¥10 billion compensation during the five years through March 2015 in the firm’s securities reports.

In total, Ghosn is suspected of having underreported about ¥9 billion of his pay.