Former head of Nissan to pay USD 1 Mn and serve a 10-year ban

Carlos Ghosn, the former head of Nissan, has agreed to pay USD 1 Mn and serve a 10-year ban from serving as an officer or director of a US company to settle fraud charges brought by the Securities and Exchange Commission.

Earlier, the SEC announced that it had filed the complaint against Ghosn, who has been released on bail in Japan, where he has been charged with various accusations relating to his pay.

The commission also charged Greg Kelly, a former Nissan director, and Nissan itself. Kelly accepted a fine of $100,000, as well as a five-year ban both on serving as a director and appearing as a lawyer before the commission. Nissan agreed to pay $15 million to settle the claims.

The commission found that Mr Ghosn, Mr Kelly and Nissan had helped conceal more than $140 million that the former chief executive received on retirement. None of the three defendants admitted or denied the charges.

According to a Financial Times report, Steven Peikin, Co-Director of the SEC’s enforcement division, said: “Nissan’s disclosures about Ghosn’s compensation were false. Through these disclosures, Nissan advanced Ghosn and Kelly’s deceptions and misled investors, including US investors.” 

Nissan , Ghosn and Kelly have neither admitted nor denied wrongdoing under the terms of the settlement.

In a statement, Nissan said it was “firmly committed to continuing to further cultivate robust corporate governance.”

Image Credits: washingtonpost.com