Nissan Chairman Carlos Ghosn has been arrested. His fate is now in hands of Japanese prosecutors and the directors of three of the world's leading car companies.
16significant acts of misconduct.17
It was a stunning turn for one of the biggest names in the global auto industry who is credited with turning around the businesses at both Nissan and Renault. Shares in the companies plunged on the news.
Nissan said his wrongdoing includes significantly under-reporting his compensation and misusing company assets. Ghosn is yet to respond to the allegations.
His arrest has triggered a corporate crisis that spans continents. He's the linchpin of a powerful alliance between Nissan, Renault and Mitsubishi, which together make one of every nine cars sold around the world.
Nissan said Monday that it carried out a months-long investigation into Ghosn, 64, and another board member after receiving a whistleblower report.
The company found that Ghosn and the other board member, Greg Kelly, had been misreporting Ghosn's earnings in filings to the Tokyo stock exchange.
Prosecutors said the two men allegedly collaborated to under-report Ghosn's income by about 5 billion yen ($44 million) over a five-year period ending in March 2015. The maximum punishment in Japan for filing a false financial statement is up to 10 years in prison and a fine of up to 10 million yen ($89,000).