Media: Nissan ex-chair Ghosn indicted for breach of trust

Japanese media reported Monday that prosecutors have charged Nissans former chairman Carlos Ghosn with breach of trust.

The charges reportedly filed Monday are his fourth. They are related to payments by a subsidiary of the Japanese automaker that allegedly went to a private investment company controlled by Ghosn.

The charges could not immediately be confirmed with prosecutors, but the indictment was expected and it ensures he will remain in detention at least for now. His current period of detention would have expired Monday if he had not been charged.

Ghosn, 65, was arrested in November. He says he is innocent of all financial misconduct charges against him.

Prosecutors re-arrested Ghosn in early April, a month after he was released on 1 billion yen (9 million) pending his trial. He is being held at the Tokyo Detention Center for questioning about the latest set of charges against him. His lawyers have said they will again seek his release on bail.

Prosecutors allege that 2.5 million out of 5 million paid by Nissan to one of its overseas distributorships went to Ghosns investment company for his private use.

Japanese media have reported that the funds allegedly were used to pay for a yacht, among other things.

Ghosn contends that the compensation he allegedly underreported was never decided upon or paid and that payments that prosecutors say amount to breach of trust were legitimate business transactions.

Rearrests of a suspect released on bail, which is allowed only after indictment, are unusual. The handling of Ghosns case has triggered criticism of Japans criminal justice system, where lengthy detentions of suspects during investigations are routine.

Nissans French alliance partner Renault SA sent Ghosn, a citizen of Brazil, France and Lebanon, to the Japanese automaker to turn it around when it was on the brink of bankruptcy 20 years ago. Nissan is 43 owned by Renault, which is partly owned by the French government.

In a video statement released this month after Ghosns arrest, the former star executive accused some other Nissan executives of plotting against him out of fears that Renault would take over the Japanese car maker.