Nissan, Carlos Ghosn fined USD 16 mn by US SEC

Nissan will pay $15 million, while Ghosn agreed to a $1 million civil penalty and a 10-year ban from serving as an officer or director of a publicly traded US company, the SEC statement said.

Ghosn was arrested in Japan and fired by Nissan last year. He is awaiting trial in Tokyo on financial misconduct charges that he denies.

Former Nissan HR official Gregory Kelly agreed to a $100,000 penalty and a five-year officer and director ban. Nissan, Ghosn, and Kelly settled without admitting or denying the SEC’s allegations and findings.

The SEC said Nissan in its financial disclosures omitted over $140 million to be paid to Ghosn in retirement, a sum that ultimately was not paid. The SEC also accused Ghosn in a suit filed in New York that he engaged in a scheme to conceal more than $90 million of compensation. That suit is being settled as part of the agreement announced on Monday.

Nissan confirmed it had settled the allegations and said it “is firmly committed to continuing to further cultivate robust corporate governance.” Nissan provided significant cooperation to the SEC, the agency said. The company now has a new governance structure with three statutory committees and has amended its securities reports for all relevant years.