The saga surrounding Nissan's ex-CEO Carlos Ghosn took another turn as a Japanese appeals court upheld the conviction of Greg Kelly, an American former Nissan executive. Kelly was accused of aiding in concealing Ghosn's income. This decision marks another chapter in a complex legal battle that has captivated the international business community.
In 2022, Kelly was convicted in Japan for underreporting Ghosn's income during one specific year out of eight alleged years. The prosecution argued that Kelly, who once served as the executive vice president at Nissan Motor Corporation, played a pivotal role in misleading financial disclosures. Consequently, he received a six-month prison sentence, suspended for three years, allowing him to return to Tennessee. His absence at the recent appellate hearing reflects his ongoing legal strategy from afar.
Yoichi Kitamura, Kelly's legal representative, announced plans to escalate the case to Japan's Supreme Court, striving for a reversal of the decision. Despite the setback, Kitamura maintains that the charges addressed in the boardroom should not have escalated into a courtroom drama. Meanwhile, Japanese prosecutors, who sought to challenge Kelly's acquittals for the remaining years, have chosen to remain silent on this recent development.
The charges against Kelly are part of a wider controversy involving Carlos Ghosn, once celebrated as a revolutionary leader who revitalized Nissan through his leadership role at Renault, its alliance partner. The deterioration of Ghosn's relationship with Nissan highlights the challenges faced by foreign executives navigating corporate culture in Japan. According to Nissan and prosecutorial claims, Ghosn, alongside Kelly, orchestrated a scheme to obscure his true compensation after the company board significantly reduced his salary.
In a dramatic turn of events in 2018, both Ghosn and Kelly were apprehended when they returned to Japan for Nissan meetings. Ghosn faced charges not only of income underreporting but also breach of trust. He later made global headlines by escaping to Lebanon from Japan, hidden in a musical instrument case, evading extradition due to the absence of an agreement between Lebanon and Japan. Ghosn continues to assert his innocence from Lebanon.
The legal entanglements for Kelly are far from over as Nissan pursues a civil lawsuit, seeking damages amounting to 4 billion yen (approximately $26 million). Despite this ongoing case, further comments from Nissan remain elusive.
Beyond individual trials, the implication of Ghosn's case extends into the business dynamics between Nissan and its industry peers. Currently, Nissan is navigating financial turbulence marked by a dip in sales. In seeking stronger partnerships, negotiations with Honda Motor Co. are underway to create a joint holding company.
This judicial verdict against Kelly reinforces the narrative of the intricacies involved in international corporate interactions, particularly in the integration of different business cultures and practices. Ghosn's case serves as a vivid illustration of these complexities. According to the Japan Federation of Bar Associations, the rarity of innocence verdicts, which occur in less than 1% of criminal cases, further underscores the weight of this legal decision.
