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The president of Nissan Motor Co., angry, Carlos Ghosn reportedly used the Japanese automaker's money to buy homes in Rio de Janeiro and Beirut, and to pay his sister for consultancy work that she would not have made.
Nissan's internal investigation has accused Mr Ghosn of under-reporting his income for many years and of having used the company's capital and expenses for his personal use.
Details about some of the alleged faults are starting to appear. The Wall Street Journal reported that Mr Ghosn had used the company's funds to buy a condominium in Rio de Janeiro and a home in Beirut, citing an unnamed person named aware of the Nissan investigation.
More: Carlos Ghosn of Nissan fired, arrested for misbehavior
More: The board of the Japanese automaker Nissan sacks Carlos Ghosn as president
French citizen born in Brazil, Ghosn, 64, grew up in Lebanon. Nissan has supplied Ghosn with six homes, including homes in Tokyo and New York, Bloomberg said, citing a company official who asked not to be identified. The other two houses were in Paris and Amsterdam, reported the Japanese public broadcaster NHK.
Ghosn is also believed to have paid his older sister up to $ 100,000 a year, a total of $ 1.7 million over the years, for a consulting contract, although he was not able to pay $ 100,000. she did not work for the company, reported the Japanese newspaper The Asahi Shimbun.
He is suspected of underestimating $ 44.6 million in revenue between 2011 and 2015, according to Tokyo attorneys.
Greg Kelly, another Nissan executive, was also arrested, said the automaker in a statement Thursday, "as the brain of this case, alongside" Ghosn. Kelly has also been removed from his position as Director Representative.
Ghosn and Kelly will remain on Nissan's board for the moment, this decision being made by shareholders. No date has yet been set for a shareholder meeting.
The scandal exceeds Nissan. A major international figure in the automotive industry, Mr. Ghosn is President and CEO of the Renault-Nissan-Mitsubishi Alliance, as well as Chairman of the Mitsubishi Board of Directors and President and Chief Executive Officer of Renault. .
Ghosn was managing director of Nissan from 2001 to last year. He became general manager of Renault in 2005, simultaneously managing the two car manufacturers. In 2016, he also became president of Mitsubishi Motors Corp. after Nissan incorporated it into the alliance.
Renault's deputy chief executive, Thierry Bollore, said for the first time Thursday night that Ghosn had been sidelined. The French automaker is still planning to launch several new models next year.
Recognizing the "special situation" of the company, it is "fully committed" to 180,000 Renault employees, partners and customers. The board of directors of Renault decided not to fire Ghosn, but to install a temporary leadership.
The French government, which owns 15% of Renault, is also worried. French Finance Minister Bruno Le Maire said Thursday that France has still not received any information from Japan on the charges Mr Ghosn was charged with and on "respect for the presumption of innocence". 39; innocence. "
The Mayor told The Associated Press that "this turbulence should not weaken" the Renault-Nissan alliance or its hundreds of thousands of jobs.
Mitsubishi Motors Corp. plans to hold a council meeting next week.
Since his arrest on Monday, Ghosn is being held in a Tokyo detention center on the same terms as other detainees, Tokyo Deputy Prosecutor Shin Kukimoto said on Thursday. He gave little details about the case.
Under Japanese law, suspects can be detained for up to 20 days by possible charge without formal indictment. Extra charges may be tagged, resulting in longer holdings. Neither has been charged so far.
The maximum penalty for violations of finance and foreign exchange laws is 10 years imprisonment, a fine of 10 million yen ($ 89,000), or both.
Analysts believe that the future alliance between Nissan and Renault may be at stake, although Nissan's statement on Thursday revealed that the company's leadership was determined to downplay the impact of Ghosn's cause on the partnership. Renault owns 43% of Nissan's capital and 15% of it.
Economic ministers from Japan and France met Thursday in Paris to discuss the issue and issued a statement saying that both sides are determined to support the alliance.
Nissan has announced that its board will look into the possibility of setting up a third-party committee to strengthen Nissan's management and compensation governance.
Associated Press contributed to this report.
Follow the USA TODAY reporter, Mike Snider, on Twitter: @ MikeSnider.
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