Ex-Nissan Chair Carlos Ghosn Charged with Breach of Trust

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The prospectors also indicted on Friday Nissan as a corporate organization and former Nissan Representative Director Greg Kelly, 62, who was released on bail in December after being served with a fresh arrest warrant as a conspirator in hiding the executive pay of Ghosn, for allegedly violating the financial instruments law.

While Ghosn remains behind bars, Kelly was released on bail late past year.

Prosecutors indicted former Nissan Motor Co.

Tokyo prosecutors have indicated former Nissan Chairman Carlos Ghosn on two new charges of financial misconduct.

Ghosn has said that the payments to Al-Juffali through a Nissan subsidiary were proper compensation for him taking care of hard business problems in the Middle East.

An appeal to end his detention was also rejected.

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The breach of trust charge alleges that 1.8 billion yen ($16.7 million) in damage was caused to Nissan through transactions made by Ghosn, and that $14.7 million was paid to the Saudi businessman.

He was already facing the first charge for allegedly under-reporting his compensation over five years to the tune of five billion yen in official documents to shareholders.

Carlos Ghosn could spend the next year in a Tokyo jail awaiting trial after he was indicted for the second time since his arrest almost two months ago.

The arrest and detention of Ghosn, who remains CEO and chairman of Nissan's capital alliance partner Renault SA, has sparked global criticism of Japan's justice system, which effectively allows a suspect to be held indefinitely and questioned without a lawyer present.

The auto executive's Japanese lawyers applied for bail soon after the new indictment on Friday.

The court overturned a ban on family visiting rights, meaning Ghosn can receive visits from his loved ones, as well as his legal team and diplomats.

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At his dramatic court appearance on Tuesday, Ghosn appeared to have lost a lot of weight in detention but otherwise seemed in good health.

Japan's prosecutors have faced criticism for a lack of clarity and communication on how they are handling the case, with Ghosn held in detention without charge for longer than would be permitted in the United Kingdom for a suspected terrorist.

On Tuesday, Ghosn's lawyers said their client might remain behind bars until a trial begins, which may not happen for another six months.

A veteran judge also said that pretrial procedures, including narrowing down points of dispute, for Ghosn's case could take a year or more. "We are fearful and very anxious his recovery will be complicated while he continues to endure such harsh conditions and unfair treatment", she said.

While the two Japanese firms quickly ousted him from leadership roles, Renault has kept him on and its board said Thursday that an ongoing audit has found no sign of fraud in the last two years.

According to Ghosn's defense counsel, Ghosn has had a high fever since Wednesday evening but his condition has improved.

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