Japanese car giant Nissan Motor, one of Central Tennessee’s largest employers, has seen one of its former U.S. executives convicted and now acquitted of most charges in Tokyo District Court.
Greg Kelly was arrested in November 2018 along with the former chairman of Nissan’s executive board, Carlos Gon. Gon led the Renault-Nissan-Mitsubishi alliance, and Kelly was accused of underestimating Gon’s compensation for eight years.
They both insisted on their innocence, but Kelly seemed particularly calm during the court hearing, in which the sentence, which seemed to surprise him, announced on Thursday his six-month sentence, which was suspended for three years.
Kelly was also allowed to return home to the United States during an appeal, which his lawyers have already recorded, stating that they intend to file. Kelly plans to return to Tennessee now that the process, which began in September 2020, is over. Kelly is on bail and lives with his wife in Tokyo.
“I have always acted in the best interests of Nissan and I have never been involved in any illegal activity,” Kelly said after the verdict.
The court acquitted Kelly on some, but not all, charges, still ruling against him for one of eight years in which Gonn’s compensation was allegedly lowered. Kelly’s legal team, led by Yoichi Kitamura, said the sentence was still wrong, even if he was charged in one of those years.
“Kelly is completely innocent. “We cannot accept the wrong decision that found him guilty for the last year,” Kitamura said in a statement.
Prosecutors initially demanded that Kelly be sentenced to two years in prison. They initially accused Ghosn, Kelly and Nissan of underestimating Ghosn’s compensation by about $ 78 million (9 billion yen) from 2011 to 2018. Kelly and his defense argued that the whole point was simply to prevent Ghosn from transferring the ship to a competitor. .
Nissan North America, based in Franklin since 2006, hired Kelly in 1988. Kelly became executive director six years after the US division moved to Tennessee. At the time, America’s car industry had just emerged from a two-year crisis that ended the Great Recession, with $ 85 million in Obama-era bailouts.
Both Kelly and Gon claim that innocence is based on the argument that the compensation in question was never paid to Ghosn or duly determined. However, Gonn was apparently absent from the trial after he posted bail at the end of 2019. After spending two long days in prison, he hid in a cargo box for musical instruments on a private plane and fled to Lebanon. where he was raised and has citizenship.
Lebanon has no extradition treaty with Japan, and Lebanese authors and directors have used Gon’s story for books and films.
Chief Justice Kenji Shimotsu made several insulting statements during yesterday’s session against Gon, describing his leadership at Nissan as a “dictatorial rule”, for example. He also said that Nissan’s poor governance had led investors to a disastrous level.
Judge Shimotsu said the alleged compensation agreement was “made only by [Ghosn’s] personal greed. “
“There is absolutely no room for mitigating circumstances in his motives,” he said.
Gon gathered several reporters for various news outlets for an interview in Zoom, in which he addressed the verdict and the leadership of Nissan. He called the decision a “face-saving sentence” for Nissan executives and prosecutors. He also claims that Nissan’s management has spoken out against him, Kelly, Renault and shareholders.
“I’m relieved for Greg and his family,” Gon said. “This story is far from over. Justice is far from being done. “
Gon took the opportunity to reiterate his categorical denial of all charges against him, including conspiring with Toshiaki Onuma, another Nissan CEO, to calculate the unpaid compensation to be secretly paid to him at a later date.
Both Tennessee senators have expressed support for Kelly now that he is returning to the United States.
“I know Greg and his family are shocked by the support they have received and are relieved to know that Greg may finally return to the United States,” said Sen. Bill Hagherty, a former U.S. ambassador to Japan. . “I personally look forward to meeting him at Nashville International Airport in the very near future for his return home.
“Greg has been subjected to circumstances that corporate America could never have considered. What should be a decision of the corporate meeting room, got to the prosecutor’s office in Tokyo. Greg is innocent of the charges against him, and I’m more than happy to go home to Tennessee. ”
Senator Marsha Blackburn also made the news.
“Greg and Dee Kelly have endured a trial involving years of false accusations, detention in Japan and a lengthy court battle,” she said in a statement. “They were strong and hoped that they would be able to return home to their family, children, grandchildren, friends and community. We are excited that the day will soon come.
“We thank everyone who worked tirelessly with them to make this joyous return home a reality, and we wish them happiness as they return home to Tennessee.