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Report Nissan's Carlos Ghosn to be arrested by Japan authorities for alleged financial violations
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Japanese prosecutors vow to hold Ghosn as long as needed
Japanese prosecutors vow to hold Ghosn as long as needed
TOKYO -- Japanese prosecutors said Thursday they will detain former Nissan chairman Carlos Ghosn for as long as needed to finish their investigation into suspicions of financial irregularities, as meanwhile the Renault-Nissan-Mitsubishi alliance reaffirmed its partnership.
Shin Kukimoto, deputy chief prosecutor for the Tokyo District Public Prosecutors' Office, defended its handling of Ghosn, who was arrested on Nov. 19 along with another Nissan executive, Greg Kelly.
"We are not detaining (Ghosn) for an unnecessarily long time," Kukimoto told reporters. "We only take necessary steps as needed."
Kukimoto refused to confirm reports that both Ghosn and Kelly have denied the allegations against them.
Ghosn is suspected of violating financial laws by underreporting millions of dollars in income and Kelly of collaborating in that. Nissan has also said an internal probe triggered by a whistleblower found Ghosn allegedly misused company assets.
Japanese automakers Nissan Motor Co. and Mitsubishi Motors Corp. have since dismissed Ghosn as their chairman. Renault SA of France has named an interim chairman but kept him on while seeking more information about his case.
Last week, prosecutors obtained a court's approval to keep Ghosn until Friday, in line with standard investigative procedures in Japan, Kukimoto said. After an initial investigation period, Japanese authorities can detain a suspect up to 20 days per charge, and gain more time by adding more charges.
"Japan is a law-abiding country and this is the way our justice system works. I don't see any problem with that," Kukimoto said. "Each country has its own history and culture ... It is not appropriate to criticize a system in another country just because it's different from your own."
Prosecutors are expected to obtain a court's permission Friday to keep Ghosn and Kelly in custody for another 10 days, until Dec. 10. Kukimoto declined to comment on that.
The arrest and detention of such a prominent businessman is shedding light on Japan's pre-indictment detention of suspects, even those suspected of financial crimes, which has long drawn criticism from human rights activists.
At the time of his arrest, Ghosn was heading the Renault-Nissan-Mitsubishi alliance, which says it sold more than 10.6 million vehicles in nearly 200 countries in 2017.
Ghosn's legal predicament has raised speculation about troubles within the alliance.
On Thursday, the automakers issued a statement saying member companies had individually and collectively "emphatically reiterated their strong commitment" to their partnership.
Japanese prosecutors vow to hold Ghosn as long as needed
TOKYO -- Japanese prosecutors said Thursday they will detain former Nissan chairman Carlos Ghosn for as long as needed to finish their investigation into suspicions of financial irregularities, as meanwhile the Renault-Nissan-Mitsubishi alliance reaffirmed its partnership.
Shin Kukimoto, deputy chief prosecutor for the Tokyo District Public Prosecutors' Office, defended its handling of Ghosn, who was arrested on Nov. 19 along with another Nissan executive, Greg Kelly.
"We are not detaining (Ghosn) for an unnecessarily long time," Kukimoto told reporters. "We only take necessary steps as needed."
Kukimoto refused to confirm reports that both Ghosn and Kelly have denied the allegations against them.
Ghosn is suspected of violating financial laws by underreporting millions of dollars in income and Kelly of collaborating in that. Nissan has also said an internal probe triggered by a whistleblower found Ghosn allegedly misused company assets.
Japanese automakers Nissan Motor Co. and Mitsubishi Motors Corp. have since dismissed Ghosn as their chairman. Renault SA of France has named an interim chairman but kept him on while seeking more information about his case.
Last week, prosecutors obtained a court's approval to keep Ghosn until Friday, in line with standard investigative procedures in Japan, Kukimoto said. After an initial investigation period, Japanese authorities can detain a suspect up to 20 days per charge, and gain more time by adding more charges.
"Japan is a law-abiding country and this is the way our justice system works. I don't see any problem with that," Kukimoto said. "Each country has its own history and culture ... It is not appropriate to criticize a system in another country just because it's different from your own."
Prosecutors are expected to obtain a court's permission Friday to keep Ghosn and Kelly in custody for another 10 days, until Dec. 10. Kukimoto declined to comment on that.
The arrest and detention of such a prominent businessman is shedding light on Japan's pre-indictment detention of suspects, even those suspected of financial crimes, which has long drawn criticism from human rights activists.
At the time of his arrest, Ghosn was heading the Renault-Nissan-Mitsubishi alliance, which says it sold more than 10.6 million vehicles in nearly 200 countries in 2017.
Ghosn's legal predicament has raised speculation about troubles within the alliance.
On Thursday, the automakers issued a statement saying member companies had individually and collectively "emphatically reiterated their strong commitment" to their partnership.
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Tokyo prosecutors to request extension of Carlos Ghosn's detention | The Japan Times
Tokyo prosecutors to request extension of Carlos Ghosn’s detention
Tokyo prosecutors plan to seek an extension of the detention period of former Nissan Motor Co. Chairman Carlos Ghosn after arresting him last week for allegedly understating his remuneration in securities reports, sources close to the matter said Thursday.
The 64-year-old Ghosn, who holds French citizenship, was arrested on Nov. 19 and his detention period was extended 10 days through Friday based on a court decision issued on Nov. 21.
French media reports have been critical of the way the former boss of the major Japanese carmaker has been treated since his arrest, regarding the period he has spent in detention as lengthy.
But Shin Kukimoto, deputy prosecutor at the Tokyo District Public Prosecutor’s Office, told a regular news conference Thursday that “there is no problem” with Ghosn’s detention, arguing that it is based on “necessity.”
Prosecutors can seek court approval to detain Ghosn for another 10 days before deciding whether to indict him.
Ghosn was arrested on suspicion of reporting only about ¥5 billion ($44 million) of nearly ¥10 billion in compensation over five years from fiscal 2010.
Tokyo prosecutors to request extension of Carlos Ghosn’s detention
Tokyo prosecutors plan to seek an extension of the detention period of former Nissan Motor Co. Chairman Carlos Ghosn after arresting him last week for allegedly understating his remuneration in securities reports, sources close to the matter said Thursday.
The 64-year-old Ghosn, who holds French citizenship, was arrested on Nov. 19 and his detention period was extended 10 days through Friday based on a court decision issued on Nov. 21.
French media reports have been critical of the way the former boss of the major Japanese carmaker has been treated since his arrest, regarding the period he has spent in detention as lengthy.
But Shin Kukimoto, deputy prosecutor at the Tokyo District Public Prosecutor’s Office, told a regular news conference Thursday that “there is no problem” with Ghosn’s detention, arguing that it is based on “necessity.”
Prosecutors can seek court approval to detain Ghosn for another 10 days before deciding whether to indict him.
Ghosn was arrested on suspicion of reporting only about ¥5 billion ($44 million) of nearly ¥10 billion in compensation over five years from fiscal 2010.
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Brazilian consul gets message from Carlos Ghosn to his family | The Japan Times
Brazilian consul gets message from Carlos Ghosn to his family
Former Nissan Motor Co. Chairman Carlos Ghosn, who was arrested last week on suspicion of financial misdeeds, misses his family and has left a brief message for them, according to Joao de Mendonca, Brazilian consul general in Tokyo.
In an interview Thursday, Mendonca said he has met with Ghosn three times at the Tokyo Detention House since his arrest, and that he gave him books about European and Brazilian history as well as foreign magazines at his request.
Mendonca said he has also passed a “very simple and very private” message to his family members, including his mother, who live in Brazil.
Mendonca said that Ghosn was in “good health and good spirit” and seemed to be “well treated” at the Tokyo Detention House.
In the meetings, each of which lasted about 20 minutes, Mendonca spoke in Portuguese with Ghosn, who has Brazilian nationality, according to the consul general.
Ghosn seemed “happy to be able to speak Portuguese,” Mendonca said.
They did not talk about the scandal at all because the purpose of the so-called “consul visits” is simply to see if Brazilians are “well taken care of” and to give them “assistance if needed,” Mendonca added.
The Tokyo District Public Prosecutors Office arrested Ghosn on Nov. 19, on suspicion of understating his executive pay in Nissan’s securities filings in violation of Japan’s Financial Instruments and Exchange Law.
Brazilian consul gets message from Carlos Ghosn to his family
Former Nissan Motor Co. Chairman Carlos Ghosn, who was arrested last week on suspicion of financial misdeeds, misses his family and has left a brief message for them, according to Joao de Mendonca, Brazilian consul general in Tokyo.
In an interview Thursday, Mendonca said he has met with Ghosn three times at the Tokyo Detention House since his arrest, and that he gave him books about European and Brazilian history as well as foreign magazines at his request.
Mendonca said he has also passed a “very simple and very private” message to his family members, including his mother, who live in Brazil.
Mendonca said that Ghosn was in “good health and good spirit” and seemed to be “well treated” at the Tokyo Detention House.
In the meetings, each of which lasted about 20 minutes, Mendonca spoke in Portuguese with Ghosn, who has Brazilian nationality, according to the consul general.
Ghosn seemed “happy to be able to speak Portuguese,” Mendonca said.
They did not talk about the scandal at all because the purpose of the so-called “consul visits” is simply to see if Brazilians are “well taken care of” and to give them “assistance if needed,” Mendonca added.
The Tokyo District Public Prosecutors Office arrested Ghosn on Nov. 19, on suspicion of understating his executive pay in Nissan’s securities filings in violation of Japan’s Financial Instruments and Exchange Law.
CrunchSlaughtered
RPM Ruler
First Stadler and now Ghosn. It looks like the profession of an automotive company CEO is not the safest one. The CEOs should organize a syndicate that will look after the conditions in the deterioration cells.
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Carlos Ghosn's arrest is more about Japanese criminal justice than corporate governance | The Japan Times
Carlos Ghosn’s arrest is more about Japanese criminal justice than corporate governance
Within days of Carlos Ghosn’s arrest for understating his compensation in Nissan’s regulatory filings came the predictable questions about what this meant about Japanese corporate governance. My answer would be not very much, except that perhaps those who look to Japan as a model of “stakeholder capitalism” might need to think more about the role of government as a stakeholder. In any case, Nissan’s complex alliance and shareholding relationships with Mitsubishi Motors and Renault (and thereby extension, the French government) mean it is an unlikely source of useful lessons on how other corporations should be run.
No, the real significance of his arrest will likely prove to be in subjecting Japan’s criminal justice system to intense global scrutiny. You can’t use a reporting violation as a pretext for detaining a famous Brazilian-Lebanese-French business leader associated with multiple global automotive brands in an unheated cell for weeks with limited access to lawyers and almost no contact with family members before formally charging him with a crime without generating some negative press. In a Nov. 22 article on news analysis site Agora, former economy ministry bureaucrat and university professor Kazuo Yawata wondered whether Ghosn’s arrest and removal might be a sign of the “suicide of Japan’s judicial system.”
What follows are some key points on how that system works.
1) It’s not the police
Some in the media have wrongly reported Ghosn being in “police custody,” but he was arrested by prosecutors. Japanese prosecutors are exceptionally powerful, having the power to arrest, investigate and prosecute suspects. Prosecutorial arrests are rare, however, and those by the special investigations team at the Tokyo Public Prosecutor’s Office exceptional, usually involving high-profile political or corporate cases. The fact that Ghosn was arrested by this office for a minor regulatory offense means it is probably not actually about a minor regulatory offense.
High profile prosecutorial arrests generate significant press and are often accompanied by a leak-based media strategy. The press was waiting for Ghosn’s jets together with the prosecutors. Within a day of his arrest, Japanese tabloid magazines had stories out full of salacious details from anonymous sources about his extravagant, allegedly Nissan-funded lifestyle. Such details were irrelevant to the grounds for his arrest, but the goal is to paint the suspect as a “bad person.” Narrative control is a recurring theme of the process.
2) Bekken taiho — arresting you to arrest you again
Unless it is for a crime in process, Japan’s Constitution prohibits arrest except by judicial warrant “which specifies the offense with which the person is charged.” Law enforcement may find this bothersome, since in Japan the most important piece of evidence in many criminal cases is a confession of either the suspect or a co-conspirator, which are hard to procure if you don’t have the target in custody.
In Japan most high-profile murder cases start with an arrest not for murder, but for “wrongful disposal of a dead body.” The police have enough evidence — a dead body and something connecting it to the suspect — to make an arrest on that charge. The suspect can then be interrogated until they confess to the murder. Based on the confession, they can then be re-arrested and prosecuted for the murder. Bekken taiho — arresting a suspect for one crime in order to investigate others — is a questionable but common practice.
The grounds for arresting Ghosn and his conveniently foreign fellow board member Greg Kelly may likely seem ridiculous. How could the pair file an untrue statement of compensation (in Japanese!) in spite of all the financial controls, audit trails and other mechanisms public companies have in place to ensure accuracy in their public reporting, without the acquiescence and cooperation of Nissan management? Granted, both men were representative directors meaning they had both the power to do so and symbolic responsibility for potentially all acts of the company in theory. In practice, however, it is an absurd proposition.
But that is not the point: If prosecutors had reasonable grounds (such as whistleblower reports) that the filing was untrue, it would be sufficient grounds for arrest and the opportunity to investigate other, hopefully more serious crimes (though subsequent reports suggest the executives obtained expert advice about the filings). Press reports that prosecutors are also considering charging Nissan — the corporation — suggest they have concluded it is impossible to ignore institutional involvement in whatever malfeasance has gone on, though to me it also seemed like an announcement that additional human perpetrators would be unnecessary.
3) ‘Hostage-based’ criminal justice
When referring to their nation’s pre-trial criminal process Japanese defense lawyers (and even some former judges) commonly use the term hitojichi shihō, or “hostage-based justice system.” The “hostage” is the suspect, the “ransom” is their confession.
Within 48 hours of a prosecutorial arrest, the prosecutors must either release the suspect, initiate a prosecution or seek a detention warrant. Note that Ghosn was not immediately prosecuted for the charge on which he was arrested, meaning that by the time this deadline arrived prosecutors: lacked evidence (a confession, for example) necessary to ensure a conviction; and/or wanted to investigate the suspects regarding whatever other crimes might have occurred. Either way, they could be assured a judge would both authorize the detention of Ghosn and Kelly for 10 days and extend the detention period again if necessary (such an extension being duly granted on Nov. 30), a request the Tokyo District Court approved Friday.
The judiciary becomes involved very soon after an arrest in a way that may seem superficially similar to other countries but is actually quite different. In Japan, the first time a suspect sees a judge is not an arraignment hearing in open court where they are informed of the charges being brought against them so they can prepare a defense. Rather it is in a closed proceeding where the prosecutor argues that the suspect should be detained because they are still being investigated in order to determine whether to initiate a prosecution and, if so, on what charges. The standard grounds for seeking detention is that the suspect is a flight risk, might tamper with evidence or intimidate witnesses.
These may be legitimate concerns in the case of violent mobsters, less so for someone like Ghosn. Nonetheless, judges invariably accept these assertions at face value, presuming the suspect guilty before there has even been a trial. While Japan is known for its 99 percent conviction rate, the more shocking statistic is the rate at which detention warrants are granted, which is above 96 percent. Even that is regarded as an improvement from a decade ago when it was about as high as the conviction rate.
Although now detained, the suspect is not yet a defendant: They have not yet been prosecuted for anything, not even the crime for which they were arrested. Under the Code of Criminal Procedure, detention is essentially an investigative tool used to interrogate suspects and develop evidence. Suspects in detention have a constitutional right to counsel but not to have a lawyer present during questioning. In fact, the Code of Criminal Procedure empowers prosecutors to subordinate a suspect’s access to their lawyer to the needs of the prosecutor’s investigation.
Defense lawyers thus have to wait until the end of the day to find out what their clients may have already admitted to. And as the world is learning in the case of Ghosn, meetings with family members (if permitted at all) are highly restricted, must take place under the supervision of guards and cannot be in any language other than Japanese. This is more narrative control, to prevent suspects from getting information to the outside world that could muddy the story prosecutors are trying to build for trial, one memorialized in a confession prepared by prosecutors and hopefully signed by an exhausted and demoralized suspect. Then the prosecution can be brought.
4) Confessions and punishment without trial
It may seem incongruous that Japanese law enforcement is so focused on procuring mea culpas, given the nation’s Constitution specifically prohibits convictions based solely on confessions. In reality, with a confession in hand it is not hard to procure something that qualifies as corroborating evidence, and in any case the constitutional prohibition does not extend to convictions based solely on the confession of a co-defendant or testimony of a witness, both of which can also be produced in similarly coercive environments.
The pretrial detention system may seem shocking but is logical in its goal of minimizing uncertainty about the result of the trial by ensuring it is just a formality, at least as to the question of guilt. Most Japanese criminal trials are just about sentencing decisions. A defendant may, of course, challenge the validity of their confession at trial, but the burden of proof is on them — they must prove they are innocent in the face of it.
In fairness to law enforcement, most of the time they probably deal with people who are clearly culpable, and prosecutors just want the baddies to tell the truth about what transpired. Ideally “the truth” and the story the prosecutors want to tell at trial are the same thing. Unfortunately, one of the criticisms of this system in complex cases that are hard to prove without confessions — those involving corporate malfeasance and corruption, for example — is that prosecutors may commence the process with a preconceived story about what transpired and overzealously use the coercive environment of the interrogation room to force suspects to render interrogations that match the story. In an infamous 2003 case police and prosecutors in Kagoshima managed to force a dozen innocent people to confess to an elaborate vote-buying conspiracy that turned out at trial to have been completely specious.
Think about it: How long could you simply vanish, separated from family, pay bills, respond to e-mails or do your job, before it caused serious long-term damage to your life and career? In addition to encouraging confession, even a false one proffered just to escape the stress of constant interrogation and life in an uncomfortable cell in a facility controlled by your interrogators, the pre-charge detention system gives police and prosecutors in Japan incredible powers to punish someone severely without even putting them on trial. Ghosn’s career as an executive at Nissan and possibly anywhere else has been terminated based on allegations that may never be proven in court.
5) Have prosecutors taken sides?
Perhaps he will ultimately be convicted of every charge brought against him. Given the impact the arrest has had on whatever plans Ghosn may have had for Nissan (including a possible merger with Renault) Japan’s prosecutors will invariably be suspected of “taking sides” — the Nissan side — in what is essentially a cross-border corporate spat.
I like to think Japan’s elite prosecutors are above such things. Nonetheless, awareness of how this case will affect their reputations — not just in Japan but around the world — will doubtless create intense pressure to ensure Ghosn is found culpable, ideally at trial but at least in the court of public opinion. The tools they have to force such a result are frightening and seem easy to misuse.
Carlos Ghosn’s arrest is more about Japanese criminal justice than corporate governance
Within days of Carlos Ghosn’s arrest for understating his compensation in Nissan’s regulatory filings came the predictable questions about what this meant about Japanese corporate governance. My answer would be not very much, except that perhaps those who look to Japan as a model of “stakeholder capitalism” might need to think more about the role of government as a stakeholder. In any case, Nissan’s complex alliance and shareholding relationships with Mitsubishi Motors and Renault (and thereby extension, the French government) mean it is an unlikely source of useful lessons on how other corporations should be run.
No, the real significance of his arrest will likely prove to be in subjecting Japan’s criminal justice system to intense global scrutiny. You can’t use a reporting violation as a pretext for detaining a famous Brazilian-Lebanese-French business leader associated with multiple global automotive brands in an unheated cell for weeks with limited access to lawyers and almost no contact with family members before formally charging him with a crime without generating some negative press. In a Nov. 22 article on news analysis site Agora, former economy ministry bureaucrat and university professor Kazuo Yawata wondered whether Ghosn’s arrest and removal might be a sign of the “suicide of Japan’s judicial system.”
What follows are some key points on how that system works.
1) It’s not the police
Some in the media have wrongly reported Ghosn being in “police custody,” but he was arrested by prosecutors. Japanese prosecutors are exceptionally powerful, having the power to arrest, investigate and prosecute suspects. Prosecutorial arrests are rare, however, and those by the special investigations team at the Tokyo Public Prosecutor’s Office exceptional, usually involving high-profile political or corporate cases. The fact that Ghosn was arrested by this office for a minor regulatory offense means it is probably not actually about a minor regulatory offense.
High profile prosecutorial arrests generate significant press and are often accompanied by a leak-based media strategy. The press was waiting for Ghosn’s jets together with the prosecutors. Within a day of his arrest, Japanese tabloid magazines had stories out full of salacious details from anonymous sources about his extravagant, allegedly Nissan-funded lifestyle. Such details were irrelevant to the grounds for his arrest, but the goal is to paint the suspect as a “bad person.” Narrative control is a recurring theme of the process.
2) Bekken taiho — arresting you to arrest you again
Unless it is for a crime in process, Japan’s Constitution prohibits arrest except by judicial warrant “which specifies the offense with which the person is charged.” Law enforcement may find this bothersome, since in Japan the most important piece of evidence in many criminal cases is a confession of either the suspect or a co-conspirator, which are hard to procure if you don’t have the target in custody.
In Japan most high-profile murder cases start with an arrest not for murder, but for “wrongful disposal of a dead body.” The police have enough evidence — a dead body and something connecting it to the suspect — to make an arrest on that charge. The suspect can then be interrogated until they confess to the murder. Based on the confession, they can then be re-arrested and prosecuted for the murder. Bekken taiho — arresting a suspect for one crime in order to investigate others — is a questionable but common practice.
The grounds for arresting Ghosn and his conveniently foreign fellow board member Greg Kelly may likely seem ridiculous. How could the pair file an untrue statement of compensation (in Japanese!) in spite of all the financial controls, audit trails and other mechanisms public companies have in place to ensure accuracy in their public reporting, without the acquiescence and cooperation of Nissan management? Granted, both men were representative directors meaning they had both the power to do so and symbolic responsibility for potentially all acts of the company in theory. In practice, however, it is an absurd proposition.
But that is not the point: If prosecutors had reasonable grounds (such as whistleblower reports) that the filing was untrue, it would be sufficient grounds for arrest and the opportunity to investigate other, hopefully more serious crimes (though subsequent reports suggest the executives obtained expert advice about the filings). Press reports that prosecutors are also considering charging Nissan — the corporation — suggest they have concluded it is impossible to ignore institutional involvement in whatever malfeasance has gone on, though to me it also seemed like an announcement that additional human perpetrators would be unnecessary.
3) ‘Hostage-based’ criminal justice
When referring to their nation’s pre-trial criminal process Japanese defense lawyers (and even some former judges) commonly use the term hitojichi shihō, or “hostage-based justice system.” The “hostage” is the suspect, the “ransom” is their confession.
Within 48 hours of a prosecutorial arrest, the prosecutors must either release the suspect, initiate a prosecution or seek a detention warrant. Note that Ghosn was not immediately prosecuted for the charge on which he was arrested, meaning that by the time this deadline arrived prosecutors: lacked evidence (a confession, for example) necessary to ensure a conviction; and/or wanted to investigate the suspects regarding whatever other crimes might have occurred. Either way, they could be assured a judge would both authorize the detention of Ghosn and Kelly for 10 days and extend the detention period again if necessary (such an extension being duly granted on Nov. 30), a request the Tokyo District Court approved Friday.
The judiciary becomes involved very soon after an arrest in a way that may seem superficially similar to other countries but is actually quite different. In Japan, the first time a suspect sees a judge is not an arraignment hearing in open court where they are informed of the charges being brought against them so they can prepare a defense. Rather it is in a closed proceeding where the prosecutor argues that the suspect should be detained because they are still being investigated in order to determine whether to initiate a prosecution and, if so, on what charges. The standard grounds for seeking detention is that the suspect is a flight risk, might tamper with evidence or intimidate witnesses.
These may be legitimate concerns in the case of violent mobsters, less so for someone like Ghosn. Nonetheless, judges invariably accept these assertions at face value, presuming the suspect guilty before there has even been a trial. While Japan is known for its 99 percent conviction rate, the more shocking statistic is the rate at which detention warrants are granted, which is above 96 percent. Even that is regarded as an improvement from a decade ago when it was about as high as the conviction rate.
Although now detained, the suspect is not yet a defendant: They have not yet been prosecuted for anything, not even the crime for which they were arrested. Under the Code of Criminal Procedure, detention is essentially an investigative tool used to interrogate suspects and develop evidence. Suspects in detention have a constitutional right to counsel but not to have a lawyer present during questioning. In fact, the Code of Criminal Procedure empowers prosecutors to subordinate a suspect’s access to their lawyer to the needs of the prosecutor’s investigation.
Defense lawyers thus have to wait until the end of the day to find out what their clients may have already admitted to. And as the world is learning in the case of Ghosn, meetings with family members (if permitted at all) are highly restricted, must take place under the supervision of guards and cannot be in any language other than Japanese. This is more narrative control, to prevent suspects from getting information to the outside world that could muddy the story prosecutors are trying to build for trial, one memorialized in a confession prepared by prosecutors and hopefully signed by an exhausted and demoralized suspect. Then the prosecution can be brought.
4) Confessions and punishment without trial
It may seem incongruous that Japanese law enforcement is so focused on procuring mea culpas, given the nation’s Constitution specifically prohibits convictions based solely on confessions. In reality, with a confession in hand it is not hard to procure something that qualifies as corroborating evidence, and in any case the constitutional prohibition does not extend to convictions based solely on the confession of a co-defendant or testimony of a witness, both of which can also be produced in similarly coercive environments.
The pretrial detention system may seem shocking but is logical in its goal of minimizing uncertainty about the result of the trial by ensuring it is just a formality, at least as to the question of guilt. Most Japanese criminal trials are just about sentencing decisions. A defendant may, of course, challenge the validity of their confession at trial, but the burden of proof is on them — they must prove they are innocent in the face of it.
In fairness to law enforcement, most of the time they probably deal with people who are clearly culpable, and prosecutors just want the baddies to tell the truth about what transpired. Ideally “the truth” and the story the prosecutors want to tell at trial are the same thing. Unfortunately, one of the criticisms of this system in complex cases that are hard to prove without confessions — those involving corporate malfeasance and corruption, for example — is that prosecutors may commence the process with a preconceived story about what transpired and overzealously use the coercive environment of the interrogation room to force suspects to render interrogations that match the story. In an infamous 2003 case police and prosecutors in Kagoshima managed to force a dozen innocent people to confess to an elaborate vote-buying conspiracy that turned out at trial to have been completely specious.
Think about it: How long could you simply vanish, separated from family, pay bills, respond to e-mails or do your job, before it caused serious long-term damage to your life and career? In addition to encouraging confession, even a false one proffered just to escape the stress of constant interrogation and life in an uncomfortable cell in a facility controlled by your interrogators, the pre-charge detention system gives police and prosecutors in Japan incredible powers to punish someone severely without even putting them on trial. Ghosn’s career as an executive at Nissan and possibly anywhere else has been terminated based on allegations that may never be proven in court.
5) Have prosecutors taken sides?
Perhaps he will ultimately be convicted of every charge brought against him. Given the impact the arrest has had on whatever plans Ghosn may have had for Nissan (including a possible merger with Renault) Japan’s prosecutors will invariably be suspected of “taking sides” — the Nissan side — in what is essentially a cross-border corporate spat.
I like to think Japan’s elite prosecutors are above such things. Nonetheless, awareness of how this case will affect their reputations — not just in Japan but around the world — will doubtless create intense pressure to ensure Ghosn is found culpable, ideally at trial but at least in the court of public opinion. The tools they have to force such a result are frightening and seem easy to misuse.
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Directors meet to decide who will fill Carlos Ghosn's shoes as Nissan chairman | The Japan Times
Directors meet to decide who will fill Carlos Ghosn’s shoes as Nissan chairman
Nissan Motor Co.’s independent board members met Tuesday to discuss who should succeed Carlos Ghosn as chairman. Their choice to replace the ousted car titan, now languishing in Tokyo Detention House, will indicate the direction the automaker’s alliance with Renault SA will take.
The most likely successors fall on each end of the spectrum: President and Chief Executive Officer Hiroto Saikawa, who has emerged as a driving force behind the investigation into Ghosn’s financial reporting, and Toshiyuki Shiga, a former Ghosn confidant, according to sources familiar with the situation.
The external directors have already said they will choose an existing board member as the next chairman. Nissan’s board is due to vote on their choice Dec. 17.
At stake is the direction of the world’s biggest car alliance between Nissan, Renault and Mitsubishi Motors Corp., as differences surface among the companies that Ghosn’s leadership held together.
The embattled executive, who was arrested Nov. 19 in Tokyo on allegations by Nissan of underreporting his income and misusing company money for personal use, will likely be served with a fresh arrest warrant next week as prosecutors add a new claim, sources familiar with the investigation said.
Saikawa’s ascendance to the position of chairman would solidify his power at Nissan, which wants to push for a more equitable partnership with Renault in their alliance after Ghosn’s ouster. The balance of power at Nissan is now tilted toward Saikawa, who has turned from a former Ghosn protege into one of the most vocal critics of his alleged wrongdoing.
Shiga’s selection would likely result in more collective management of Nissan.
Renault is the largest shareholder of Nissan and has voting rights in the company. Nissan is the second-largest shareholder in the French company but has no power to vote. That has created an imbalance that has worsened over the years with Nissan’s success in markets like China and the U.S., where the French carmaker is absent.
Nissan has rejected external chairman candidates suggested by Renault, according to the sources, who asked not to be identified discussing private matters.
A Nissan representative declined to comment on the directors’ meeting and the chairman candidates.
Ghosn was dismissed as chairman of Nissan on Nov. 22 in a stunning downfall for the jet-setting executive. While Mitsubishi Motors also ousted Ghosn, Renault refused to remove the 64-year-old as CEO, and instead named an interim leader.
Meanwhile, Tokyo prosecutors plan to arrest Ghosn on a fresh claim of understating his income, the Sankei Shimbun reported Tuesday, in a move that could keep him in detention until the end of the month.
Citing unnamed sources, the newspaper said prosecutors plan to arrest Ghosn and Kelly next Monday for the same crime covering the period from 2015 to 2017, during which the suspects allegedly understated Ghosn’s income by about ¥4 billion.
If authorities approve the maximum detention for that case, Ghosn and Kelly would remain in custody until Dec. 30, the paper said.
The prosecutors’ office declined to comment on the report.
Directors meet to decide who will fill Carlos Ghosn’s shoes as Nissan chairman
Nissan Motor Co.’s independent board members met Tuesday to discuss who should succeed Carlos Ghosn as chairman. Their choice to replace the ousted car titan, now languishing in Tokyo Detention House, will indicate the direction the automaker’s alliance with Renault SA will take.
The most likely successors fall on each end of the spectrum: President and Chief Executive Officer Hiroto Saikawa, who has emerged as a driving force behind the investigation into Ghosn’s financial reporting, and Toshiyuki Shiga, a former Ghosn confidant, according to sources familiar with the situation.
The external directors have already said they will choose an existing board member as the next chairman. Nissan’s board is due to vote on their choice Dec. 17.
At stake is the direction of the world’s biggest car alliance between Nissan, Renault and Mitsubishi Motors Corp., as differences surface among the companies that Ghosn’s leadership held together.
The embattled executive, who was arrested Nov. 19 in Tokyo on allegations by Nissan of underreporting his income and misusing company money for personal use, will likely be served with a fresh arrest warrant next week as prosecutors add a new claim, sources familiar with the investigation said.
Saikawa’s ascendance to the position of chairman would solidify his power at Nissan, which wants to push for a more equitable partnership with Renault in their alliance after Ghosn’s ouster. The balance of power at Nissan is now tilted toward Saikawa, who has turned from a former Ghosn protege into one of the most vocal critics of his alleged wrongdoing.
Shiga’s selection would likely result in more collective management of Nissan.
Renault is the largest shareholder of Nissan and has voting rights in the company. Nissan is the second-largest shareholder in the French company but has no power to vote. That has created an imbalance that has worsened over the years with Nissan’s success in markets like China and the U.S., where the French carmaker is absent.
Nissan has rejected external chairman candidates suggested by Renault, according to the sources, who asked not to be identified discussing private matters.
A Nissan representative declined to comment on the directors’ meeting and the chairman candidates.
Ghosn was dismissed as chairman of Nissan on Nov. 22 in a stunning downfall for the jet-setting executive. While Mitsubishi Motors also ousted Ghosn, Renault refused to remove the 64-year-old as CEO, and instead named an interim leader.
Meanwhile, Tokyo prosecutors plan to arrest Ghosn on a fresh claim of understating his income, the Sankei Shimbun reported Tuesday, in a move that could keep him in detention until the end of the month.
Citing unnamed sources, the newspaper said prosecutors plan to arrest Ghosn and Kelly next Monday for the same crime covering the period from 2015 to 2017, during which the suspects allegedly understated Ghosn’s income by about ¥4 billion.
If authorities approve the maximum detention for that case, Ghosn and Kelly would remain in custody until Dec. 30, the paper said.
The prosecutors’ office declined to comment on the report.
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Ghosn faces Japan's 99% conviction rate if charged
Ghosn faces Japan's 99% conviction rate if charged
Ex-Nissan chief's case draws scrutiny to country's treatment of suspects
TOKYO/PARIS -- Former Nissan Motor Chairman Carlos Ghosn, who is expected to be charged on Monday with underreporting his pay, faces a daunting statistic: More than 99% of criminal cases in Japan that produce a indictment result in a conviction.
The high-profile arrest of the celebrated automotive executive has drawn international attention, along with scrutiny of how Japan treats suspects before and after they are charged.
The Brazilian-born Frenchman has hired for his defense a former chief of the special investigations section of the Tokyo prosecutors office, the same unit that is investigating him on allegations of financial crimes.
Much of the international scrutiny focuses on how Ghosn, who has been held since his arrest Nov. 19, is being questioned. Detainees in Japan cannot have an attorney present during interrogations, unlike in the U.S., the U.K., France, Germany, Italy or South Korea.
"The suspect is by himself or herself. Attorneys are not allowed to attend the interrogation or provide any information," said Lawrence Repeta, a former law professor at Meiji University in Tokyo and a member of the Washington State Bar Association in the U.S. "That's from the Western standpoint a clear violation of due process. It's unfair."
An attempt was made to revamp Japan's criminal justice system after special prosecutors in Osaka were discovered to have doctored evidence back in 2010, but the effort ultimately fell through.
"We need to accept criticism on the fact that attorneys aren't allowed to be present at interrogations," said Yuji Shiratori, a Kanagawa University professor and expert on French criminal law.
Ghosn would not be the first corporate executive indicted by Japanese special prosecutors. Internet tycoon Takafumi Horie was convicted of securities fraud over a decade ago, and corporations prosecuted this year include Kobe Steel, over false quality data, and general contractors accused of fixing bids.
How well Japan observes the legal principle of a suspect's presumption of innocence is also under question.
"Once targeted by prosecutors, the accused is presumed guilty and there is a heavy burden to prove innocence because the state is reluctant to admit mistakes and miscarriages of justice, and will resort to unscrupulous practices to ensure the desired verdict," said Jeffrey Kingston, a professor at Temple University in Japan.
Ghosn's isolation from the outside world has raised another issue. In France, families are free to visit as long as they do not interfere with the investigation. But Japan strictly limits detainees' contact with family, friends and company associates to prevent them from coordinating stories.
In France, where police generally can hold people for only 24 hours after an arrest, those involved in serious crimes could be detained for up to a year before trial, Japanese experts note. For violating the equivalent of Japan's Financial Instruments and Exchange Act, suspects usually would be held for about four months to as long as a year.
"Physical detention is considered a last resort in France, and many suspects of white-collar crime are let go," said professor Yasuyuki Suemichi at Nanzan University in Nagoya. "We can't draw a direct comparison because we have different legal systems, but I can understand why the French media and people are surprised."
Questions also remain regarding what happens after Ghosn is charged. Japanese law allows courts to order that a suspect be kept in custody after being charged. Suspects who plead not guilty are often denied bail, as prosecutors contend they could destroy evidence, for example.
If Ghosn is not granted bail, he could see out the year in custody.
"Japan does not follow international standards," Repeta said, despite the country being a signatory to human rights treaties covering the treatment of suspects and the presence of counsel during interrogations. "The Ghosn case ... is creating a black mark on the reputation of the Japanese legal system."
Ghosn faces Japan's 99% conviction rate if charged
Ex-Nissan chief's case draws scrutiny to country's treatment of suspects
TOKYO/PARIS -- Former Nissan Motor Chairman Carlos Ghosn, who is expected to be charged on Monday with underreporting his pay, faces a daunting statistic: More than 99% of criminal cases in Japan that produce a indictment result in a conviction.
The high-profile arrest of the celebrated automotive executive has drawn international attention, along with scrutiny of how Japan treats suspects before and after they are charged.
The Brazilian-born Frenchman has hired for his defense a former chief of the special investigations section of the Tokyo prosecutors office, the same unit that is investigating him on allegations of financial crimes.
Much of the international scrutiny focuses on how Ghosn, who has been held since his arrest Nov. 19, is being questioned. Detainees in Japan cannot have an attorney present during interrogations, unlike in the U.S., the U.K., France, Germany, Italy or South Korea.
"The suspect is by himself or herself. Attorneys are not allowed to attend the interrogation or provide any information," said Lawrence Repeta, a former law professor at Meiji University in Tokyo and a member of the Washington State Bar Association in the U.S. "That's from the Western standpoint a clear violation of due process. It's unfair."
An attempt was made to revamp Japan's criminal justice system after special prosecutors in Osaka were discovered to have doctored evidence back in 2010, but the effort ultimately fell through.
"We need to accept criticism on the fact that attorneys aren't allowed to be present at interrogations," said Yuji Shiratori, a Kanagawa University professor and expert on French criminal law.
Ghosn would not be the first corporate executive indicted by Japanese special prosecutors. Internet tycoon Takafumi Horie was convicted of securities fraud over a decade ago, and corporations prosecuted this year include Kobe Steel, over false quality data, and general contractors accused of fixing bids.
How well Japan observes the legal principle of a suspect's presumption of innocence is also under question.
"Once targeted by prosecutors, the accused is presumed guilty and there is a heavy burden to prove innocence because the state is reluctant to admit mistakes and miscarriages of justice, and will resort to unscrupulous practices to ensure the desired verdict," said Jeffrey Kingston, a professor at Temple University in Japan.
Ghosn's isolation from the outside world has raised another issue. In France, families are free to visit as long as they do not interfere with the investigation. But Japan strictly limits detainees' contact with family, friends and company associates to prevent them from coordinating stories.
In France, where police generally can hold people for only 24 hours after an arrest, those involved in serious crimes could be detained for up to a year before trial, Japanese experts note. For violating the equivalent of Japan's Financial Instruments and Exchange Act, suspects usually would be held for about four months to as long as a year.
"Physical detention is considered a last resort in France, and many suspects of white-collar crime are let go," said professor Yasuyuki Suemichi at Nanzan University in Nagoya. "We can't draw a direct comparison because we have different legal systems, but I can understand why the French media and people are surprised."
Questions also remain regarding what happens after Ghosn is charged. Japanese law allows courts to order that a suspect be kept in custody after being charged. Suspects who plead not guilty are often denied bail, as prosecutors contend they could destroy evidence, for example.
If Ghosn is not granted bail, he could see out the year in custody.
"Japan does not follow international standards," Repeta said, despite the country being a signatory to human rights treaties covering the treatment of suspects and the presence of counsel during interrogations. "The Ghosn case ... is creating a black mark on the reputation of the Japanese legal system."
CrunchSlaughtered
RPM Ruler
Things are starting to get ugly. I suppose that being a Japanese high level manager in a French company bought by Japanese is not the safest job at the moment.
CrunchSlaughtered
RPM Ruler
No, I mean what I've written. I expect some French revenge and somebody has to become the sacrificial lamb. I know such companies but in Germany, namely in Düsseldorf (a German company, bought by Japanese company and having Japanese managers at some of the top positions), and maybe there are such in France also.
chonkoa
Aerodynamic Artisan
I see your point now.
It's a real shame that the cost of living these days squeezes people so tightly they have to resort to crime to meet ends meet...
... oh wait ...
... wait ...
... nope, thought I had a tear welling up in my eye for the disgustingly rich person getting caught trying to furnish their lifestyle even further, but I think it was just a stray eye lash.
... oh wait ...
... wait ...
... nope, thought I had a tear welling up in my eye for the disgustingly rich person getting caught trying to furnish their lifestyle even further, but I think it was just a stray eye lash.
hovabongZA
Tire Trailblazer
Keeping up with the Kardashian’s isn’t easy. Eventually crime is the only way.
Soup
Premium
Carlos Ghosn, Fallen Nissan Chairman, Will Stay in Jail
Carlos Ghosn, Fallen Nissan Chairman, Will Stay in Jail
TOKYO — Carlos Ghosn, the former Nissan Motor chairman whose legal problems have put the fate of a global automotive empire in doubt, will stay in jail for at least the rest of the year, a Tokyo court ruled Sunday.
Under the ruling, Mr. Ghosn will remain in custody until Jan. 1, giving the Japanese authorities more time to question him on suspicion of further wrongdoing while running Nissan. Under Japanese law, prosecutors can ask that Mr. Ghosn be held for another 10 days after that, raising the possibility that he could be in jail until at least Jan. 11.
The court’s decision was largely expected after Mr. Ghosn was arrested on Friday for a third time, this time on suspicion that he offloaded personal investment losses onto the company’s books. Mr. Ghosn already faces charges that he underreported his executive compensation for a number of years.
The new arrest effectively gave prosecutors an opportunity to ask the court that he be kept in custody longer, even as it showed that prosecutors in Japan are widening the scope of their investigation into his leadership at the company. Mr. Ghosn had been set to apply to be released on bail on Friday.
An attorney for Mr. Ghosn in Japan could not immediately be reached for comment on Sunday.
Mr. Ghosn has already been in a Tokyo detention center for more than a month. He was first arrested in November on suspicion that he underreported his income from Nissan. Mr. Ghosn and another former Nissan executive, Greg Kelly, were indicted this month on charges of colluding in underreporting Mr. Ghosn’s compensation in securities filings. Nissan was also indicted on a charge of underreporting an executive’s pay in regulatory filings.
Mr. Ghosn’s initial arrest on Nov. 19 raised questions about the future of Nissan and its partners in a vast carmaking alliance that includes Renault of France and Mitsubishi Motors of Japan. The alliance sold more than 10 million cars globally last year.
Mr. Ghosn and Mr. Kelly were arrested a second time earlier this month on suspicion of conspiring to underreport Mr. Ghosn’s compensation over a different time period.
Last week, Mr. Ghosn and Mr. Kelly appeared to be close to making bail. A Tokyo court on Thursday had unexpectedly turned down a routine request by prosecutors that the two former Nissan executives be kept in custody while the investigation continued. Mr. Ghosn’s family and representatives had been confident that he would be released on bail, according to two people briefed on the planning. But Mr. Ghosn’s arrest on Friday made it unlikely Mr. Ghosn would be released in the coming days.
Mr. Kelly applied for bail on Friday. His family has appealed to American and Japanese officials to help secure his release so that he can have surgery to treat a spinal condition. It was unclear as of Friday whether prosecutors would oppose the application.
Carlos Ghosn, Fallen Nissan Chairman, Will Stay in Jail
TOKYO — Carlos Ghosn, the former Nissan Motor chairman whose legal problems have put the fate of a global automotive empire in doubt, will stay in jail for at least the rest of the year, a Tokyo court ruled Sunday.
Under the ruling, Mr. Ghosn will remain in custody until Jan. 1, giving the Japanese authorities more time to question him on suspicion of further wrongdoing while running Nissan. Under Japanese law, prosecutors can ask that Mr. Ghosn be held for another 10 days after that, raising the possibility that he could be in jail until at least Jan. 11.
The court’s decision was largely expected after Mr. Ghosn was arrested on Friday for a third time, this time on suspicion that he offloaded personal investment losses onto the company’s books. Mr. Ghosn already faces charges that he underreported his executive compensation for a number of years.
The new arrest effectively gave prosecutors an opportunity to ask the court that he be kept in custody longer, even as it showed that prosecutors in Japan are widening the scope of their investigation into his leadership at the company. Mr. Ghosn had been set to apply to be released on bail on Friday.
An attorney for Mr. Ghosn in Japan could not immediately be reached for comment on Sunday.
Mr. Ghosn has already been in a Tokyo detention center for more than a month. He was first arrested in November on suspicion that he underreported his income from Nissan. Mr. Ghosn and another former Nissan executive, Greg Kelly, were indicted this month on charges of colluding in underreporting Mr. Ghosn’s compensation in securities filings. Nissan was also indicted on a charge of underreporting an executive’s pay in regulatory filings.
Mr. Ghosn’s initial arrest on Nov. 19 raised questions about the future of Nissan and its partners in a vast carmaking alliance that includes Renault of France and Mitsubishi Motors of Japan. The alliance sold more than 10 million cars globally last year.
Mr. Ghosn and Mr. Kelly were arrested a second time earlier this month on suspicion of conspiring to underreport Mr. Ghosn’s compensation over a different time period.
Last week, Mr. Ghosn and Mr. Kelly appeared to be close to making bail. A Tokyo court on Thursday had unexpectedly turned down a routine request by prosecutors that the two former Nissan executives be kept in custody while the investigation continued. Mr. Ghosn’s family and representatives had been confident that he would be released on bail, according to two people briefed on the planning. But Mr. Ghosn’s arrest on Friday made it unlikely Mr. Ghosn would be released in the coming days.
Mr. Kelly applied for bail on Friday. His family has appealed to American and Japanese officials to help secure his release so that he can have surgery to treat a spinal condition. It was unclear as of Friday whether prosecutors would oppose the application.
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Premium
French government calls for Renault to replace Carlos Ghosn
France has requested the board of Renault meet to replace its scandal-hit boss Carlos Ghosn.
French finance minister Bruno Le Maire, in an interview with French TV station LCI, said: "The state as a shareholder wants a board meeting to be called in the coming days and the designation of a new stable and sustainable governance.
"I always indicated, while reiterating the presumption of Carlos Ghosn's innocence, that if he was durably prevented (from fulfilling his role) we would move to the next stage. We're there now."
Carlos Ghosn was arrested on 19 November on charges of financial misconduct and faces a lengthy criminal trial that could be more than six months away.
The 64-year old was denied bail earlier this week after he was indicted on under-reporting his salary and passing personal investment losses to Nissan.
Last week, he insisted he had been "wrongly accused and unfairly detained" as he appeared publicly in court for the first time since his arrest.
Publically the French government, which owns 15% of Renault, has supported the company's decision to keep Ghosn in office.
France has requested the board of Renault meet to replace its scandal-hit boss Carlos Ghosn.
French finance minister Bruno Le Maire, in an interview with French TV station LCI, said: "The state as a shareholder wants a board meeting to be called in the coming days and the designation of a new stable and sustainable governance.
"I always indicated, while reiterating the presumption of Carlos Ghosn's innocence, that if he was durably prevented (from fulfilling his role) we would move to the next stage. We're there now."
Carlos Ghosn was arrested on 19 November on charges of financial misconduct and faces a lengthy criminal trial that could be more than six months away.
The 64-year old was denied bail earlier this week after he was indicted on under-reporting his salary and passing personal investment losses to Nissan.
Last week, he insisted he had been "wrongly accused and unfairly detained" as he appeared publicly in court for the first time since his arrest.
Publically the French government, which owns 15% of Renault, has supported the company's decision to keep Ghosn in office.
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