Nissan, along with its former chairman Carlos Ghosn, has reached a settlement with the Securities and Exchange Commission (SEC) concerning fraud charges.
As part of the settlement, Nissan and Ghosn will collectively pay $16 million to resolve the civil fraud charges brought by US federal regulators. The settlement follows accusations that Ghosn and Nissan concealed over $140 million in compensation and retirement benefits for Ghosn from Nissan’s investors. The SEC officially announced the agreement on Monday.
In addition to the $1 million fine Ghosn is set to pay, he has also agreed to a 10-year prohibition from serving as an officer or director of a public company. Ghosn led Nissan for 20 years before his arrest by Japanese authorities in November. Since his initial arrest, Ghosn has been both released and re-arrested three times. Despite the legal actions against him, Ghosn maintains his innocence and is currently out on bail with several restrictions, including limitations on contacting his wife, Carole Ghosn. Carole Ghosn has been questioned by a Japanese judge regarding her husband’s case. The first trial hearing for Carlos Ghosn is scheduled for April 2020.
In a statement from Carlos Ghosn’s legal team, it was declared that he plans to challenge and refute the accusations made against him. The statement read, “Mr. Ghosn and his defense team are now focusing on vigorously contesting the criminal case in Japan and pursuing his claims against Nissan globally.”
