Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Nissan, Ghosn clash over Rio apartment filled with art, cash: filing

Stock Markets Dec 10, 2018 08:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The building in which an apartment contained cash, art works and personal belongings of Carlos Ghosn is pictured in Rio de Janeiro
 
JP225
-0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
RENA
+1.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
7201
+2.07%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Marcelo Rochabrun and Ritsuko Ando

SAO PAULO/TOKYO (Reuters) - A Rio de Janeiro apartment containing cash, art works and personal belongings of Carlos Ghosn has become the latest battleground between the indicted former Nissan Motor Co Ltd (T:7201) chairman and the automaker.

Ghosn is seeking to retrieve "personal belongings, documents, cash, objects and art pieces” from the beachfront apartment, which Nissan says it owns. The home could contain evidence of financial misconduct, according to a filing by Nissan in a Brazilian court last week.

The legal dispute has been fierce in recent days, showing that Ghosn and Nissan are not just clashing in Japan, where the scandal first broke and where Ghosn was formally charged on Monday, but around the world.

Ghosn's family obtained a favorable injunction last week that was then swiftly overturned, but Japanese newspaper Nikkei reported the family obtained another favorable court decision on Monday.

A PR representative for Ghosn in Brazil declined to comment. A source at Nissan in Brazil on Monday afternoon said the Ghosn family still does not have access to the apartment.

The previously unreported court papers seen by Reuters show the extent of the legal dispute between Ghosn and Nissan over access to the apartment, one of several around the world he has been able to use. Nissan alleges Ghosn, who had been hailed for bringing the company back from the brink of bankruptcy, underreported his income by tens of millions of dollars and diverted corporate funds for personal use.

The Rio apartment contains three safes that Nissan has yet to open, according to the filings. The carmaker found them when it did an audit of the apartment following Ghosn's firing, the company said.

The apartment also has "designer furniture, artwork and decorative objects," it added.

The Rio apartment was purchased by a Nissan subsidiary in late 2011 following the carmaker's launch of a factory in the nearby city of Resende.

The apartment was bought on expectations that Ghosn's trips to Brazil, where he was born and maintains citizenship, would "become more constant" after the factory opened, Nissan said in the filings.

The apartment is in the Copacabana neighborhood, on a road directly facing Rio's famous beaches. An apartment in the same building was listed online for 12 million reais ($3.07 million).

Monday's indictment in Japan puts the ball back in the court of Nissan's alliance partner, Renault (PA:RENA). The French company, which owns a 43.4 percent stake in Nissan, is preparing for a Dec. 13 board meeting likely to consider Ghosn's future as its chairman and chief executive.

Renault has so far stopped short of dismissing Ghosn while repeatedly demanding access to the findings of the Nissan internal investigation that led to his arrest.

"INCALCULABLE RISK"

Court proceedings in Brazil started on Nov. 29 when a lawyer for Ghosn asked a judge to grant him access to the Rio apartment.

Nissan says allowing him access would "represent an incalculable risk of destruction of potential evidence of crimes allegedly committed." So far he has been denied access by Brazil's courts.

A lawyer for Ghosn, Jose Roberto de Castro Neves, told Reuters he was unaware of the existence of three safes and that it was "absurd speculation" that they may contain evidence of wrongdoing.

"He's a very smart guy," de Castro Neves said in a brief phone interview. "If he had done something wrong, he would never leave it in the apartment."

Tokyo prosecutors on Monday indicted Ghosn for under-reporting his income and also charged the automaker, making Nissan culpable for the alleged financial misconduct, which has shocked the industry. Ghosn was arrested in Japan on Nov. 19 and is being held in a Tokyo jail.

Ghosn has not made any statement through his lawyers in Japan but has denied the allegations, according to local media.

Nissan, Ghosn clash over Rio apartment filled with art, cash: filing
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email