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Carlos Ghosn, Head of Renault-Nissan, Arrested for Financial Wrongdoing

Carlos Ghosn, often called a genius and one of the best automotive industry executives in the business, has been arrested in Japan on suspicion of a number of financial wrongdoings. The businessman is accused of several fraudulent practices, among them under-reporting his income for several years.

Nissan has issued a statement to the effect that Ghosn, as well as representative director Greg Kelly, had for years been lying to authorities at the Tokyo Stock Exchange. The amounts involved have not been divulged, but it appears the alleged misdeeds went on for years.

A months-long investigation and the new charges result from statements by a whistleblower regarding fraudulent activities by Carlos Ghosn. The internal investigation at Nissan also brought to light "numerous other significant acts of misconduct," on the part of the company’s head, including the use of company assets for personal reasons. The same charges apply to Greg Kelly.

Hiroto Saikawa, CEO of Nissan, will recommend removing Ghosn and Kelly from their respective positions, effective immediately.  

There has been no comment from Carlos Ghosn in reaction to the accusations being leveled against him. According to Japanese daily Yomiuri, the executive has already been arrested. The Brazilian-born businessman was CEO of the Renault-Nissan Alliance and of Renault itself, and the chairman of Mitsubishi. The 64-year-old has been planning to gradually step back from his responsibilities.

It seems that that process will come sooner rather than later, and much more abruptly.