Nissan could face a fine of up to 4 billion yen ($37 million) over its alleged under-reporting of former chairman Carlos Ghosn’s compensation, The New York Times reports.
Japan’s market watchdog, The Securities and Exchange Commission (SESC), is expected to recommend the fine on the basis that Ghosn’s under-reported salary had a “significant” impact on investor decisions for the car manufacturer.
Neither the SESC or Nissan have commented on the issue, but a source claims that the authorities will start formal investigations into the matter before the end of the month while examining Nissan’s latest annual filings.
Nissan could get away with a reduced fine of around 2.4 billion yen ($22 million) if it files documentation before the formal investigation begins and recognizes that its previous reporting of Ghosn’s income was incorrect. The fine would cover a four-year period through to March 2018. Statute of limitations issues would mean the Japanese car manufacturer isn’t liable before that period.
Ghosn has been in and out of custody since November 2018 over a slew of allegations, including claims that he understated his salary by around $84.71 million over a period of nearly a decade. He is also accused of temporarily transferring personal financial losses to the books of Nissan and enriching himself to the tune of around $5 million to the expense of the company. If found guilty on all charges, Ghosn could face up to 15 years in prison.