Nissan paying $15M, Ghosn $1M to settle SEC fraud charges

WASHINGTON (AP) — Nissan has agreed to pay $15 million and its former chairman Carlos Ghosn is paying $1 million to settle federal regulators' civil fraud charges of hiding from investors more than $140 million in compensation and retirement benefits for Ghosn.

The Securities and Exchange Commission announced the settlement Monday with the major Japanese automaker and its former chairman, who also agreed to be barred for 10 years from serving as an officer or director of a public company. Ghosn is awaiting trial in Japan on financial misconduct allegations in a criminal case.

Ghosn, who led Nissan for two decades, was arrested by Japanese authorities in Tokyo and jailed four times since November. Ghosn has maintained he is innocent. He is currently out on bail but faces restrictions on his activities such as not being allowed to contact his wife, Carole Ghosn. She has appeared before a Japanese judge to answer questions in the case. The first hearing in the trial has been set for April.

Ghosn and Nissan Motor Co. settled the charges without admitting or denying the SEC's allegations, but agreed to refrain from future anti-fraud violations of the securities laws.

In addition, a former Nissan director, Greg Kelly, agreed to pay a $100,000 penalty to settle the SEC charges, to be barred for five years from serving as an officer or director of a public company, and to be suspended for five years from practicing as an attorney before the SEC.

In a statement, Ghosn's team of lawyers noted that he will be allowed to contest and deny the allegations in the criminal case in Japan, and they said he "fully intends to do so."

"Mr. Ghosn and his defense team are now able to focus their efforts on continuing to vigorously fight the criminal case in Japan and pursue his claims against Nissan around the world," the statement...