Arrest in Japan: On November 19, 2018, Japanese prosecutors arrested Ghosn and Nissan's representative director Greg Kelly on charges of under-reporting Ghosn's compensation by ¥5 billion ($44 million) over five years in financial reports to Japanese regulators.
Dismissal from Nissan: Following the arrest, Nissan's board of directors voted to dismiss Ghosn as chairman and CEO. Mitsubishi Motors, the third member of the alliance, also removed him as chairman.
Additional Charges: In addition to the initial charge, Ghosn faced multiple other allegations of financial misconduct, including using company funds for personal expenses and diverting funds to a Saudi businessman close to him.
Escape to Lebanon: In December 2019, Ghosn managed to flee Japan to Lebanon, a country that does not have an extradition treaty with Japan. He released a statement claiming that he was innocent and that he left Japan to escape "injustice and political persecution."
Red Notice: Interpol issued a Red Notice for Ghosn's arrest, requesting law enforcement agencies worldwide to locate and detain him pending extradition to Japan.
Charges in France: French authorities also opened a criminal investigation into Ghosn, focusing on allegations related to his use of company assets for personal benefit. In 2020, Ghosn was charged in France with financial misconduct, breach of trust, and money laundering.
Trial in Japan: Ghosn's trial in Japan began in April 2020. He pleaded not guilty to all charges and maintained his innocence throughout the proceedings.
Verdict: In March 2022, a Tokyo court found Ghosn guilty of under-reporting his compensation by about half the amount prosecutors alleged. He was sentenced to two years and six months in prison, along with a fine of 10 million yen ($91,000).
Released on Bail: Ghosn was released on bail in March 2022 after the Tokyo High Court granted him bail. He remains in Japan awaiting the outcome of his appeal against his conviction.
The Ghosn scandal significantly impacted the automotive industry and raised concerns about corporate governance practices. It led to changes in the leadership and management structures of the Renault-Nissan-Mitsubishi Alliance and prompted discussions on the importance of transparency and accountability in business.
