Former Nissan chair Carlos Ghosn charged with financial misconduct

Tokyo prosecutors charged former Nissan chair Carlos Ghosn with financial misconduct on Monday after it was found that he had understated his income for over five years and re-arrested him on new charges which could keep him detained until December 30.

The prosecutors said Ghosn and senior Nissan executive Greg Kelly conspired to understate his pay from 2011 to 2015 and from 2016 to 2018. Kelly was also charged with financial misconduct on Monday.

Japanese prosecutors extended their charges to cover the carmaker as well, prompting the company to say it was taking the situation extremely seriously.

"Making false disclosures in annual securities reports greatly harms the integrity of Nissan's public disclosures in the securities markets, and the company expresses its deepest regret," the manufacturer said in a statement.

Ghosn was detained by authorities in November after the first allegations came to light. He repeatedly denied the accusations, with his lawyers claiming the payments under investigation did not relate to his salary but to future income he would receive after retiring.

Nissan and Mitsubishi both sacked Ghosn as chairman last month following his initial arrest.

Ghosn could face up to 10 years in prison and a fine of up to $6.2m, said the Japanese Securities and Exchange Surveillance Commission.