Watchdog Recommends Nissan Be Fined $22 Million

Watchdog recommends Nissan be fined $22 million

Japan's securities watchdog has recommended that the Financial Services Agency order Nissan to pay 2.4 billion yen, or 22 million dollars, in connection with the underreporting of compensation of its former chairman Carlos Ghosn.

Nissan has been facing criminal charges by the Securities and Exchange Surveillance Commission on suspicion of underreporting Ghosn's compensation by about 84 million dollars for eight years up to fiscal 2017.

The automaker was indicted along with Ghosn and another executive in December last year and January this year for violating the Financial Instruments and Exchange Act .

Apart from the criminal charge, the watchdog considered taking administrative disciplinary action against Nissan.

It has decided to punish Nissan for misstating its financial reports for the four years up to fiscal 2017. For this period, an administrative monetary penalty is not barred by a statute of limitations.

The watchdog said the penalty should be about 37 million dollars. But it reduced the amount to about 22 million dollars as Nissan had voluntarily reported its unlawful act before the watchdog began inspection.

The monetary penalty recommended against the automaker for making false financial statements is the second largest after the 67 million dollar penalty recommended against Toshiba four years ago.