Ghosn allegedly owed $27 mil. to dealership owner

Sources say former Nissan Motor chairman Carlos Ghosn owed about 27 million dollars in debt to the owner of a dealership in Oman, to which he allegedly moved Nissan's funds.

Tokyo prosecutors allege that Ghosn directed Nissan's funds to the dealership and shifted part of the money for his private purposes. They suspect that the scheme caused Nissan losses worth more than 5 million dollars.

The prosecutors arrested Ghosn in connection with the case on Thursday, alleging aggravated breach of trust. This is the fourth time that they have arrested him. The move came after Ghosn was released on bail from a detention facility in Tokyo last month.

Sources say Ghosn borrowed around 27 million dollars from the owner of the dealership in January 2009. They add the prosecutors have obtained an IOU for the debt which carries a signature believed to be that of Ghosn.

When Ghosn signed the document, he was being asked by a bank for additional collateral to cover losses he had incurred from his personal foreign exchange contracts.

The sources say Ghosn offered the bank his time deposits worth about 19.7 million dollars in the month that followed the signing of the IOU.

The dealership received a total of over 34 million dollars from Nissan between 2012 and 2018.

Ghosn has reportedly denied the allegations. His defense team says his arrest is illegitimate as he will not flee or destroy evidence. It plans to file an appeal against his arrest at a court.

Source : https://www3.nhk.or.jp/nhkworld/en/news/20190405_04/

Source: https://www3.nhk.or.jp/nhkworld/en/news/20190405_04/