The trial of Greg Kelly, an American involved in the Carlos Ghosn scandal at Nissan, reached a critical point in a Tokyo court. Kelly, a former Nissan executive, was arrested in 2018 for allegedly under-reporting Ghosn’s compensation. Despite being cleared of most charges in 2022, Kelly received a suspended sentence for one count of under-reporting.
Kelly’s defense lawyer, Yoichi Kitamura, passionately urged the court for a verdict of total innocence, emphasizing the damage to Kelly’s global reputation due to the case. Kitamura argued that it was illogical for Kelly to conspire in under-reporting for just one year, calling the previous verdict unreasonable.
Judge Kazunori Karei pledged to deliver the final verdict on February 4th. Throughout the trial, Kelly has maintained his innocence, much like Ghosn, who also faced charges but fled to Lebanon in 2019. Ghosn claims innocence but is unlikely to face trial due to Japan’s lack of an extradition treaty with Lebanon.
Japanese executives typically earn considerably less than their Western counterparts. Ghosn’s annual pay was slashed by 50% in 2010 when Japan mandated disclosure of executive compensation. Testimonies in the trial revealed Kelly’s attempts to compensate Ghosn through consultancy fees and a non-compete agreement.
Kelly, a lawyer, contended that his actions were in the best interest of Nissan and could have been resolved internally. Prosecutors remain confident in their case, alleging that Ghosn’s compensation was under-reported by $63 million over eight years. Despite the legal complexities, Kelly’s fate hangs in the balance until the upcoming verdict.
