EXCLUSIVE: Nissan Funds Allegedly Flowed to Ghosn via Dummy Firms

January 2, 2019

Tokyo--Hundreds of millions of yen in funds had allegedly flowed to former Nissan Motor Co. <7201> Chairman Carlos Ghosn and his relatives from the Japanese automaker via overseas dummy firms, informed sources told Jiji Press Monday.

The allegations surfaced through an investigation by Nissan into suspected financial misconduct involving Ghosn, the sources said. Tokyo prosecutors are also aware of the flow of Nissan funds, the sources said.

Nissan did not have to spend the massive amount of money that was funneled to these dummy companies, located in places such as Brazil and Lebanon. Ghosn was born in Brazil and spent his childhood years in Lebanon.

Ghosn has been arrested and indicted on charges of understating his compensation in Nissan's financial reports.

He is also suspected of paying 14.7 million dollars to a Saudi Arabian acquaintance from Nissan funds. The money is believed to have been spent for nonexistent sales promotion purposes.

The newly alleged flow of suspicious funds is also believed to have been linked to spending of Nissan money that did not have legitimate purposes, the sources said.

Ghosn also faces allegations including spending Nissan money through a Dutch unit to purchase overseas property for his private use and paying his elder sister 100,000 dollars a year for a nonexistent advisory role. Jiji Press