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Former Nissan Chairman Carlos Ghosn released on bail

Moneywatch: Ghosn bail, Uber drivers, Tesla loss
MoneyWatch headlines: Ghosn bail, Uber drivers, big Tesla loss 01:09
  • Former Nissan Chairman Carlos Ghosn was released Thursday from a Japanese detention center after posting a $4.5 million bail. 
  • Japanese prosecutors on Monday indicted Ghosn on new allegations of financial misconduct. 
  • A Tokyo court restricted Ghosn's contact with his wife, who is allegedly link to the latest allegations. 

Tokyo — Former Nissan Chairman Carlos Ghosn was released from a Japanese detention center Thursday after posting $4.5 million in bail. Japanese prosecutors sought to keep him at the Tokyo Detention House, contending he could tamper with evidence or influence witnesses. But the Tokyo District Court rejected the appeal, deciding he should be released.

In a twist, the court also decided to restrict Ghosn's contact with his wife, Carole Ghosn, targeting her as someone related to the latest allegations, according to his legal team. Ghosn was arrested in November, released on bail in early March, but re-arrested and detained again April 4 on new allegations. The latest bail comes on top of the 1 billion yen ($9 million) Ghosn posted for his earlier release.

Former Nissan chairman Carlos Ghosn, center, escorted Thursday out of the Tokyo Detention House following his release on bail.  Behrouz Mehri / AFP/Getty Images

He has been charged with under-reporting his post-retirement compensation and breach of trust in diverting Nissan money and allegedly having it shoulder his personal investment losses.

Ghosn, 65, a Brazilian-born Frenchman of Lebanese ancestry, says he is innocent. He contends the compensation he allegedly underreported was never decided on or paid and the payments were for legitimate services.

For the earlier release, his defense team offered special conditions such installing a surveillance camera at the entrance to a specified residence for the former star executive and promising to use a cellphone and the internet only under specified conditions. The latest release requires similar restrictions, including not leaving the country, according to the court.

"I am so relieved. I had been worried," Ghosn's lawyer Junichiro Hironaka told reporters about the court decision.

Carole Ghosn, a vocal advocate for husband

Hironaka said the bail conditions require advance notice of contacts between Ghosn and Carole Ghosn.

She is mentioned in the latest allegations that center around payments by an Oman business to operations allegedly run by Ghosn, which reportedly have some links to his wife's business. She was called in for questioning earlier this month.

Carole Ghosn has said both her husband and she are innocent. She has been a vocal proponent, appealing to public opinion and human rights groups about Ghosn's treatment.

Hironaka said he had expected the restrictions because bail conditions generally prohibit contact with people linked to the case. He said the legal team will work to moderate the restrictions.

Takashi Takano, one of Ghosn's lawyers, has denied Japanese media reports that Carole Ghosn had contacted people related to the allegations and stressed Ghosn's entire family has been abiding by the terms of his bail agreement.

"If they had done such a thing, the release on bail would end, and they would lose bail money," he said in a recent blog post.

Japanese social media and media were alive with speculation over how Ghosn might appear when he leaves detention.

When he was released on March 4 after more than 100 days in detention, he wore a cap, mask and what appeared to be a construction worker's outfit. Ghosn was still easily recognizable, and the "disguise" provoked widespread amusement and commentary.

Lengthy detentions criticized as "hostage justice"

Ghosn's case has reignited criticism, both internally and internationally, against lengthy detentions without a trial or conviction in Japan, which critics call "hostage justice." Although prolonged detentions are routine in Japan, rearresting a person who has cleared bail is unusual.

Ghosn led Nissan Motor Co. for two decades and was credited with steering the success of the global alliance with Renault SA of France and smaller Japanese automaker Mitsubishi Motors Corp.

Former Nissan Chairman Carlos Ghosn released on bail 01:49

Renault owns 43 percent of Yokohama-based Nissan, while Nissan owns 15 percent of Renault.

His departure has raised concern over a potential leadership vacuum at Nissan, which he dominated until his arrest, and about the future of its alliance with Renault and Mitsubishi.

In a video statement released April 9, Ghosn said a few Nissan executives had plotted against him in "a conspiracy."

A date for Ghosn's trial has not been set. In Japan, trial preparations tend to take months. Both sides have said that the case is complex. The allegations against him involve payments to a Saudi dealership, as well as the funds paid to an Oman business.

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