Nissan confirmed that the U.S. Securities and Exchange Commission has opened an investigation on them, with the automaker being scrutinized for its disclosures in the U.S. on executive pay.
The SEC’s investigation follows Nissan’s indictment in Japan, with local authorities accusing the automaker of false disclosures about former chairman Carlos Ghosn’s compensation.
According to Automotive News, SEC is trying to find out whether Nissan has violated U.S. securities law in its reporting on executive pay.
Nissan is facing two charges in Japan, for allegedly violating the country’s Financial Instruments and Exchange Act by underreporting Ghosn’s compensation. According to Japanese authorities, Nissan has failed to report tens of millions of dollars over two periods, the first in the 2010-2014 fiscal years and the second in the 2015-2017 fiscal years.
Back in November, Japanese authorities arrested Nissan’s then-Chairman Carlos Ghosn and company director Greg Kelly over the same allegations. The two executives were arrested after Nissan conducted an internal investigation. Both men declared their innocence.
The SEC’s inquiry is thought to be in its early stages and may not point to any wrongdoing, Bloomberg reports. Work on the investigation was slowed by the partial U.S. government shutdown, according to sources.