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Nissan, Ghosn Settle SEC Fraud Case
Nissan Motor Co. and former Chairman Carlos Ghosn have agreed to pay $15 million and $1 million, respectively, to settle U.S. claims that they failed to report more than $90 million in benefits for Ghosn.
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Nissan Motor Co. and Carlos Ghosn, its former chairman, have agreed to pay $15 million and $1 million, respectively, to settle U.S. claims that they failed to report more than $90 million in benefits for Ghosn.
Former Nissan Director Greg Kelly, accused of helping to hide the compensation from investors, will pay $100,000. Ghosn also has agreed not to serve as an officer or director of any publicly-traded company for 10 years. Kelly must do the same for five years.
The deal settles civil fraud charges filed by the U.S. Securities and Exchange Commission. The SEC’s claims stem from charges leveled against Ghosn and the company last December.
Japanese prosecutors assert that Ghosn’s true compensation, mostly regarding deferred retirement benefits, was grossly understated between fiscal 2010 and 2017.
At the time, Nissan argued that it didn’t need to report Ghosn’s deferred compensation because the amounts, which were indexed to Nissan’s future financial performance, weren’t known. Prosecutors said the company should have disclosed an estimate of the exposure.
Ghosn denies any wrongdoing. He and Nissan have the right to contest the SEC charges during Ghosn’s criminal trial, which is scheduled to begin in Japan next spring.
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