cwerdna
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Re: Carlos Ghosn ousted over financial misconduct

Tue Nov 27, 2018 2:25 am

Ghosn was mentioned on Nightly Business Report again on Monday.

Ousted by Mitsubishi, too, questions surface about Carlos Ghosn's arrest
https://www.nbcnews.com/business/autos/ ... st-n940106

Ghosn suspected of shifting personal investment losses to Nissan: Asahi
https://www.reuters.com/article/us-niss ... SKCN1NW04X

Victim of plea bargaining? Carlos Ghosn’s arrest based on murky evidence, former prosecutor says
https://www.japantimes.co.jp/news/2018/ ... utor-says/
He called the investigation that led to Ghosn’s arrest “violent” and “haphazardly done.”

Gohara said that prosecutors arrested Ghosn only on the assumption that he had violated the Financial Instruments and Exchange Law. He added that it was highly likely the sum missing from Ghosn’s securities report — leading to his arrest as well as the arrest of his aide Greg Kelly — was the equivalent of money Ghosn was entitled to receive after leaving the company.

“If Mr. Ghosn’s crime stems from the fact that he and other people failed to accurately describe the scheduled payment in a security report, there’s no such requirement,” he said.

Gohara also suggested that the underreported amount could have been from a stock deal known as stock appreciation rights, or SAR. But if that were the case, he said, Nissan’s other executives, including CEO Hiroto Saikawa, would also be held liable since they would also have participated in the arrangement.

In Ghosn’s arrest, prosecutors used Japan’s plea bargaining system that was introduced in June through legal amendments. It allows for the acceleration of court proceedings for crimes such as bribery, embezzlement, tax fraud and drug smuggling.

Under the system, defendants can plead guilty to lesser offenses in exchange for more lenient sentencing or the dismissal of other charges. It also allows criminal suspects to negotiate deals with prosecutors in exchange for information on other suspects, which Gohara says can encourage people to give false statements.


I do agree with what the NBC News piece says:
But some observers are questioning why Nissan chose to turn the matter over to prosecutors rather than resolve the matter directly, as a number of competitors have done when senior executives were accused of financial misdeeds.

I semi-agree with what Sage at viewtopic.php?p=541646#p541646 alluded to. If Ghosn had support from Saikawa, the Nissan board, top execs, etc. this all could have been swept under the rug or dealt with more quietly.

I remember reading an article describing Saikawa as strictly by the book, so perhaps he was pissed off that Ghosn wasn't? Supposedly Saikawa was a Nissan lifer, having joined straight out of college in 1977. So, he would've seen Nissan's rise and downfall (near death in 1999) but perhaps he was jealous or pissed off that a foreigner came in and saved the company, was worshipped as a hero, etc.? And, now Renault, the foreign company was in control of Nissan?

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SageBrush
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Re: Carlos Ghosn ousted over financial misconduct

Tue Nov 27, 2018 6:26 am

cwerdna wrote:I semi-agree with what Sage at http://www.mynissanleaf.com/viewtopic.p ... 46#p541646 alluded to. If Ghosn had support from Saikawa, the Nissan board, top execs, etc. this all could have been swept under the rug or dealt with more quietly.

Yep, and I have no doubt it happens all the time. That said, the cover-up DOES carry risk to those involved. Again I refer those interested to a reading of the Catholic Church. So the actions of Nissan could also be paraphrased as "you want us to stick our neck out for you ?!" Remember, Ghosn was outed by a whistle-blower acting under a recently enacted law in Japan that (I presume) protects the whistle-blower from prosecution. Nissan could have tried to provide cover but I doubt they could have stopped a criminal investigation. Judging by the assent of the Renault installed members on the Nissan board that voted to oust Ghosn the evidence is not ambiguous.

It is not so far-fetched to imagine that Nissan did not have a lot of lee-way in performing an internal due diligence probe of the whistle-blower information and that when the investigation turned up suspected criminal activity, it had to be turned over to the authorities. This though is a guess since I have not read the law (and almost certainly would not understand the nuances anyway.) However, the execs surely knew that the whistle-blower could contact the authorities directly so unless they were willing to "silence" the whistle-blower with certainty, this has played out as one might expect even before we invoke any Ghosn/Renault antipathy.
Last edited by SageBrush on Tue Nov 27, 2018 9:38 am, edited 1 time in total.
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rdhauser
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Re: Carlos Ghosn ousted over financial misconduct

Tue Nov 27, 2018 9:08 am

Another tidbit about questionable financial transactions from the press in Japan:

http://www.asahi.com/ajw/articles/AJ201811270036.html
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SageBrush
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Re: Carlos Ghosn ousted over financial misconduct

Tue Nov 27, 2018 9:48 am

rdhauser wrote:Another tidbit about questionable financial transactions from the press in Japan:

http://www.asahi.com/ajw/articles/AJ201811270036.html

That adds up to 9.7B yen and another 18M USD so far, equal to almost $100 Million of combined fraud and embezzlement. And I won't be at all surprised if more malfeasance is uncovered as they dig deeper.

Will the conspiracy theorists climb back into their holes, please ?
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Bouldergramp
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Re: Carlos Ghosn ousted over financial misconduct

Tue Nov 27, 2018 4:44 pm

From the Wall Street Journal:
Image

My TracFone camera is marginal but it works pretty well at the library since I can no longer get past the WSJ paywall using my desktop computer at home.

cwerdna
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Re: Carlos Ghosn ousted over financial misconduct

Wed Nov 28, 2018 3:20 am

^^^
Good summary. Regarding tipping off the press at Haneda airport when Ghosn's corporate plane landed... ahh.. yes. There was the video of the Japanese prosecutors boarding his plane: https://www.asahi.com/articles/ASLCM6H22LCMUHBI01F.html.

‘Palace Coup’ at Nissan was Japan Inc. Striking Back, Fund Says
https://finance.yahoo.com/news/palace-c ... 00073.html

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Re: Carlos Ghosn ousted over financial misconduct

Wed Nov 28, 2018 4:30 am

cwerdna wrote:Inside Nissan chairman's £2.7m penthouse apartment raided by police | Daily Mail Online
https://www.dailymail.co.uk/news/articl ... Ghosn.html

Thanks to a mention at https://www.japantimes.co.jp/news/2018/ ... _5QT-KIbmE of
Another team stormed Ghosn’s luxurious apartment high up in a skyscraper in the affluent Tokyo neighborhood of Motoazabu. By 5:30 p.m., word was out and hoards of camera crews swarmed around the building — home to wealthy ex-pats and celebrities.
and a quick search on Google Maps for Motoazabu, I'm guessing Ghosn's apartment was at https://www.google.com/maps/place/Motoa ... 39.7320324.

I'll have to swing by building the next time I'm in Japan.

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SageBrush
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Re: Carlos Ghosn ousted over financial misconduct

Wed Nov 28, 2018 6:44 am

Bouldergramp wrote:From the Wall Street Journal:.

Amazing article. It completely ignores the ~ 100 Million USD of suspected theft/fraud/embezzlement and whines about process while trying to shift the focus to questions of intrigue.

I suppose the reader is left to choose what they care about: criminal acts or politics. Personally, I find the politics a side-show to the allegations of criminal behavior. In fact, politics are part and parcel of any whistle-blower expose unless the tattle-tale gets a fraction of the proceeds. Is there a spurned woman in one of Ghosn's collection of homes he forgot about ? Do we excuse the criminal because the motivations of the tattle-tale are revenge or personal gain ?
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joeriv
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Re: Carlos Ghosn ousted over financial misconduct

Wed Nov 28, 2018 8:38 am

According to this article https://www.reuters.com/article/us-nissan-ghosn-auditor/auditor-had-questioned-nissan-on-payments-to-ghosn-at-heart-of-scandal-source-idUSKCN1NX0JQ:

“Ernst & Young ShinNihon LLC questioned Nissan’s management several times, chiefly around 2013, about purchases of overseas luxury homes for Ghosn’s personal use and of stock-appreciation rights that were conferred on him.

But the Japanese automaker said the transactions and financial reporting were appropriate, the source told Reuters on condition of anonymity.

The revelation shows Nissan and its auditor were discussing the transactions, in apparent contrast with Nissan’s contention that the alleged misreporting of benefits for Ghosn was masterminded by Ghosn and a key lieutenant.”

Hard to argue fraud on Ghosn’s part when Nissan knew and approved the transactions - sounds more like a Japanese palace coup.
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Re: Carlos Ghosn ousted over financial misconduct

Wed Nov 28, 2018 10:32 am

joeriv wrote:Hard to argue fraud on Ghosn’s part when Nissan knew and approved the transactions

No, it means that Nissan may have kept quiet until they stopped keeping quiet. Nissan may be found complicit but it does not change the criminal allegations. I doubt Nissan knew of the entirely of Ghosn's criminality but it came to light after the whistle-blower steeped forward. And keep in mind that 'Nissan' is ambiguous. The Executive Board was bypassed here.

The mistress is complicit and stays quiet ... until she changes her mind.
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