SEC charges Nissan, Ghosn for 'concealing' $140M in compensation
Charges were also filed against former director Greg Kelly.
The US Securities and Exchange Commission has charged Nissan, former CEO Carlos Ghosn and his lieutenant, Greg Kelly, with defrauding investors by concealing compensation.
The agency says Ghosn engaged in a scheme to conceal more than $90 million in compensation from public disclosure, with "substantial assistance from Kelly and subordinates." The disgraced executive is also accused of taking steps to inflate his retirement allowance by more than $50 million.
"Simply put, Nissan's disclosures about Ghosn's compensation were false," said Steven Peikin, co-director of the SEC's enforcement unit. "Through these disclosures, Nissan advanced Ghosn and Kelly's deceptions and misled investors, including US investors."
Nissan agreed to pay a $15 million civil penalty and cease and desist from committing further violations of anti-fraud laws. Ghosn agreed to a $1 million civil penalty and is barred from serving as an officer or director in the US for 10 years. Kelly will pay a $100,000 penalty.
"Nissan, Ghosn, and Kelly settled without admitting or denying the SEC's allegations and findings," the SEC noted.