Ghosn May Face Many Weeks of Additional Jail Time

December 04, 2018 at 3:00 PM

Carlos Ghosn, the former chairman of Nissan Motor Corp. who was arrested two weeks ago on suspicion of financial misconduct, is likely to be arrested again next week on additional charges, according to the Sankei Shimbun.

The Japanese daily newspaper cites unnamed sources who say prosecutors will claim that Ghosn understated his income by 9 billion yen ($79 million). Earlier media reports indicated Ghosn was suspected of hiding about 5 billion yen ($44 million) of income.

The former chairman also is being held on suspicion of passing along stock trading losses to the carmaker and misusing corporate funds to pay for vacations and multiple homes.

Under Japan’s unique laws, authorities can hold a suspect for 10 days and apply for a 10-day extension without filing formal charges. Prosecutors may repeat the process indefinitely by adding a new potential charge for each additional period of incarceration. Until indicted, suspects cannot apply for bail.

After charges have been filed, prosecutors can hold suspects in custody indefinitely. Bail is rarely awarded, particularly for foreigners and those who refuse to confess to a crime, legal experts tell Bloomberg. They add that pre-trial detention of more than a year is not unusual in Japan.