Carlos Ghosn

[Saab2000]

The story of Carlos Ghosn’s escape from Japan to Lebanon is fascinating and surely material for a future thriller film. Hard to believe this can happen today.

For those not familiar, Carlos Ghosn is a former auto executive from Renault and Nissan and was a very high profile man in the auto industry for decades. I’ve been aware of him for a long time a I follow that business. He was charged with fraud in Japan and was under strict house arrest in Japan under a $14 million bond.

A few days ago he showed up in Beirut, apparently via Turkey. Japan is furious and a lot of people will have a lot of explaining to do.

Carlos Ghosn: Japanese authorities have raided the former auto titan's Tokyo home - CNN

[Chik]

In cases like this, it's never just the judiciary / government that's pissed off. I am guessing that there would be others who are rather displeased even if they might not feel embarrassed like law enforcement and other government agencies. The fact that Lebanon do not have an extradition treaty with Japan is just a legal issue.

If he were innocent, then he certainly no longer appears that way.

His London-based daughter might need watching over.

[dgaddis]

Leaving on a private jet doesn't seem all that unexpected for someone with plenty of money who wanted to leave.

[Saab2000]

Leaving on a private jet doesn't seem all that unexpected for someone with plenty of money who wanted to leave.

That's not really the issue. How did he get out of his house, which was under constant surveillance? How was he processed when his passports were in the possession of his attorneys? Did the pilots know the 'cargo' they were smuggling? Lots of questions.

Getting a private plane to carry you isn't so hard. Getting the logistics behind smuggling a high profile accused criminal in a place like Japan right is going to be a very interesting question.

[monadnocky]

I heard somewhere he was smuggled out of the residence in a box that was ostensibly carrying musical instruments or some such nonsense?
Anyway, he's rich, so there's that.

[dgaddis]

I heard somewhere he was smuggled out of the residence in a box that was ostensibly carrying musical instruments or some such nonsense?
Anyway, he's rich, so there's that.

Yeah. I mean I'm picturing him living in an Estate, not a house like mine. I take my trash out to the can and once a week roll it down to the street. He's probably got a guy that comes and picks his up. I mean if the police were REALLY watching him close, like checking all the boxes and vehicles leaving the house, yeah it would be more difficult to get out. But otherwise I don't see it being that hard to get out. But I don't actually know what his house looks like or anything else, so, there's that.

[dgaddis]

More info :: Carlos Ghosn: How did the Nissan ex-boss flee from Japan? - BBC News

[Scott G.]

I heard somewhere he was smuggled out of the residence in a box that was ostensibly carrying musical instruments or some such nonsense?
Anyway, he's rich, so there's that.

The Japanese police are looking for these suspects..........

800px-Mission_impossible_cast_1970.JPG
cue the music.

[vertical_doug]

He kept an apartment in Motoazabu Forest Hills which is a mori building and looks upside down.

Lately, he moved into a private house which is like a big box on the street not far from there. The concept of a private estate in Tokyo only exists for a few really old money families.


Since Japan totally shuts down for New Year Celebrations Dec 31 - Jan 3. I can see him using the festive occasion when things are lax to sneak away.
Since the Japanese can no longer imprison him, they have to try to freeze assets. His Lebanese stuff will be untouchable, but they can try for his French, Brasil properties as well as bank accounts.

[colker]

That's not really the issue. How did he get out of his house, which was under constant surveillance? How was he processed when his passports were in the possession of his attorneys? Did the pilots know the 'cargo' they were smuggling? Lots of questions.

Getting a private plane to carry you isn't so hard. Getting the logistics behind smuggling a high profile accused criminal in a place like Japan right is going to be a very interesting question.

He had another passport, a french passport, stashed in a locked suitcase.

[snotrockets]

I think it's safe to assume that if he was willing to forgo $8M+ in bail, anything the Japanese government can reach right now is worthless to him, and he has enough in accounts he trusts are unreachable by the Japanese gov (probably not in Lebanon though: I assume the usual Jersey Islands, Panama, DE, etc.)

[Blue Jays]

If authorities allowed Jeffrey Epstein, the most high-profile prisoner in the world, to be murdered...it is conceivable Carlos Ghosn could slip away.

[j44ke]

$14 million bail. He had a second French passport. The other French passport was being held by his lawyers. He had this second French passport because by law as a foreigner he had to carry official identity papers with him at all times. However he was not given direct access to this passport - it was supposed to be kept on the premises of his estate but locked with access only granted by his lawyers who held the key.

Correct me if I am wrong, Doug and Chik, but the justice process for top Japanese execs is not straightforward, nor is it usually all that punitive. There are often contrived machinations by which trials are avoided, lesser figures take the fall and are then pardoned with sentences shortened, the execs do not typically spend any time in jail or only receive a conviction akin to some sort of ceremonial pronouncement followed by a head bowed apology and a long vacation.

Ghosn was being treated significantly more harshly than a Japanese exec of his stature, and so he could only assume that he would not be accorded the brand of VIP justice accorded Japanese execs in the courts either. Given this "disrespect" even before the trial begins, why should he respect the Japanese courts, wait around and stay in Japan?

I mean, ethically he should have stayed in Japan and abided by the law, seen the trial through, received his sentence, etc. yadda yadda yadda, but if the law is fair but the house is not, why stay in the house? Especially if you have more money than Zeus and plenty of friends in high places.....

I figure France (in support of Renault) had some role in this clean an extraction, along with corporate/political factions in Japan who wanted to embarrass the current government and/or current Nissan cabal, and even Turkey (cash or promise of Renault factory or whatever) who can now produce an investigation diplomatically and has arrested 7+ people in conjunction with the event. Lebanon is possibly the least likely to be involved I think. They are the landing pad.

Lots of theater. The key part is that no trial is likely to occur now, and Ghosn is gone from Nissan. Thus, no dirty laundry aired for anyone on any side. Win win. And now Nissan can be run like Olympus.

[Chik]

$14 million bail. He had a second French passport. The other French passport was being held by his lawyers. He had this second French passport because by law as a foreigner he had to carry official identity papers with him at all times. However he was not given direct access to this passport - it was supposed to be kept on the premises of his estate but locked with access only granted by his lawyers who held the key.

Correct me if I am wrong, Doug and Chik, but the justice process for top Japanese execs is not straightforward, nor is it usually all that punitive. There are often contrived machinations by which trials are avoided, lesser figures take the fall and are then pardoned with sentences shortened, the execs do not typically spend any time in jail or only receive a conviction akin to some sort of ceremonial pronouncement followed by a head bowed apology and a long vacation.

Ghosn was being treated significantly more harshly than a Japanese exec of his stature, and so he could only assume that he would not be accorded the brand of VIP justice accorded Japanese execs in the courts either. Given this "disrespect" even before the trial begins, why should he respect the Japanese courts, wait around and stay in Japan?

I mean, ethically he should have stayed in Japan and abided by the law, seen the trial through, received his sentence, etc. yadda yadda yadda, but if the law is fair but the house is not, why stay in the house? Especially if you have more money than Zeus and plenty of friends in high places.....

I figure France (in support of Renault) had some role in this clean an extraction, along with corporate/political factions in Japan who wanted to embarrass the current government and/or current Nissan cabal, and even Turkey (cash or promise of Renault factory or whatever) who can now produce an investigation diplomatically and has arrested 7+ people in conjunction with the event. Lebanon is possibly the least likely to be involved I think. They are the landing pad.

Lots of theater. The key part is that no trial is likely to occur now, and Ghosn is gone from Nissan. Thus, no dirty laundry aired for anyone on any side. Win win. And now Nissan can be run like Olympus.

In Japan, any foreigner with mid to long term residency permits (leave to remain for more than 90 days) are issued a residence card, and they are obliged to carry it at all times. There is no requirement to carry a passport in addition to the residence card, and carrying a passport does not free one from having to carry a residence card. Presumably, Ghosn had a mid to long term residence permit given his professional role. (If you do not have a residence card, then you should probably be carrying your passport, but I don't know if that is a requirement in Japan.)

It is true that in France, and many EU member states (the UK being a notable exception), everyone is obliged to carry a form of government-issued identification. This is usually in a smaller format plastic card, usually the size of a credit card, rather than a passport, issued by the national government. However, I am not aware of that requirement extending to situations where their residents are abroad, and I wouldn't know how they would enforce it anyway.

Therefore, my guess is that the reason he had the second passport is not for the reason you state.

You're right about the "usual" proceedings in corporate misdeeds, and there seems to be many who take the view that this is just another white collar "victimless" crime that happened in Japan, and therefore, the objections about how Ghosn is being treated. Unlike those people, I don't have all the facts of the case. The only thing I know is that, if true, the scale of the crime (embezzlement, money laundering, tax evasion et al) doesn't compare to any supposed precedents (which tend to be bribery or concealment of product faults or manufacturing mismanagement) that seem to form the basis for their argument about why his case is being made into such a big deal. Yes, the potential amounts we are talking about are peanuts compared to what has happened in other countries, but in Japan, it's a big deal. The fact that the alleged crimes were committed by a hired suit rather than an owner proprietor makes it worse. And, to be honest, the fact that it's a foreign hired suit probably hurts public perception significantly.

Also, it's important to remember that much of what happens after someone gets caught for a white collar crime in any country is dependent on messaging: managing the media and the public. When you're paid several times what someone in a comparable role as a start and then you get accused of these things, crisis management becomes critical, but it seems to have been... absent.

His underlings, particularly that American chap, disclosed fundamental details of the scheme (albeit I'm certain they don't know the full extent of what was done because anyone with half a brain would not allow any one person to know the entire scheme). The confessions were probably under duress. However, I don't believe Ghosn has proffered any counter-evidence to say those movements in cash and other assets were legitimate, either through his legal or PR team. Also, it wasn't as if he was being represented by a court-appointed public defender; he has some of the biggest guns on his legal team.

I actually prefer not to discuss whether he is being treated unfairly by the judicial system for the same reason why I would not want to discuss if every black man in the US should skip bail and go abroad. It's too slippery a slope for me, particularly since I have no dog in the race. I'm not a Nissan or Renault shareholder.

It's an embarrassment for Renault and the French government too, but the French have a much thicker skin for these sorts of things. Also, I would not be surprised if they start to refer to him as a Lebanese whereas previously they referred to him as a French champion, just like Yannick Noah was called a Cameroonian after he no longer won grand slams.

Jorn, how do you like screenwriting? Ghosn in 60 Seconds? Ghosn with the Wind?

[Chik]

That's not really the issue. How did he get out of his house, which was under constant surveillance? How was he processed when his passports were in the possession of his attorneys? Did the pilots know the 'cargo' they were smuggling? Lots of questions.

Getting a private plane to carry you isn't so hard. Getting the logistics behind smuggling a high profile accused criminal in a place like Japan right is going to be a very interesting question.

Yep, he had resources to assist. But in order to have accumulated access to those resources, he probably stepped on a few toes over the years. That's where things get interesting, I think.

And, if Lebanese operatives were in play, well, that makes for an even better film.

[vertical_doug]

I think it's safe to assume that if he was willing to forgo $8M+ in bail, anything the Japanese government can reach right now is worthless to him, and he has enough in accounts he trusts are unreachable by the Japanese gov (probably not in Lebanon though: I assume the usual Jersey Islands, Panama, DE, etc.)

Off Shore money is never unreachable, it just takes time and money to follow the trail. Internationally, there is a real push to clean up off shore havens from a money laundering perspective. The Caymans and BVI are cleaning up their acts because they do not want to be on the heightened due diligence lists. Since 9/11, any international financial institution with a corresponding US Bank (needed for US dollars) has heightened due diligence.

Because each shell needs to be litigated in its own legal jurisdiction, the cost to privately chase funds is prohibitive, but for a sovereign, it becomes a matter of principle (sovereigns have an entire legal system to use). You can use the Malaysian governments case of chasing the 1MDB funds as an example. It took time, but assets were seized all over. The UBO (ultimate beneficial owner) is always there somewhere, so peel back enough of the onion and you'll find Ghosn.

[vertical_doug]

Ghosn was being treated significantly more harshly than a Japanese exec of his stature, and so he could only assume that he would not be accorded the brand of VIP justice accorded Japanese execs in the courts either. Given this "disrespect" even before the trial begins, why should he respect the Japanese courts, wait around and stay in Japan?

Jorn, I don't know where you get your information but I don't think you could be more wrong. I think his treatment was pretty standard. It is a lot like what happened to Ezoe Hiromasa in the 1980's in the Recruit scandal which bought down the Nakasone government. He was held for a long long time. He wrote a book called 'Where is the Justice' about his 13 years in court. This is the future that Ghosn did not want, a slow moving court case where he is stuck in limbo for a decade in Japan.

You also have to understand the Japanese language. When you are charged with a crime in Japan, the press stops referring to you as the honorific Ghosn-san and you become Ghosn-yogisha. (literally, Suspect Ghosn) Guilt is built into the language and culture, and by not accepting responsibility, Ghosn-Yogisha is guilty of the worst crime- not being honorable. If you are not honorable, how can you be trusted. Therefore, in the eyes of the Japanese public, he is now extremely guilty. \

[sk_tle]

just like Yannick Noah was called a Cameroonian after he no longer won grand slams.

That is not my recollection. He only won one grand slam in single and one in double anyway (2 years apart). On the other hand he has always been proud of his African roots and stated several time he felt as cameroonian as he is french which he is totally entitled to. He has been voted as the most popular public figure in France 11 times in the last few decades, only bested by Jacques-Yves Cousteau and Abbée Pierre.

If you want to mention a good example that was more the case of Mary Pierce which got a lot of support from France when she was winning, with her name pronounced as if her first name was spelled Marie only to get her name pronounced in a more american way when she was losing matches.

That said, unless he starts singing and transforms himself into a party machine I don't think Carlos Ghosn has the kind of personnality to receive such a good public support. ;-)

[Chik]

Off Shore money is never unreachable, it just takes time and money to follow the trail. Internationally, there is a real push to clean up off shore havens from a money laundering perspective. The Caymans and BVI are cleaning up their acts because they do not want to be on the heightened due diligence lists. Since 9/11, any international financial institution with a corresponding US Bank (needed for US dollars) has heightened due diligence.

Because each shell needs to be litigated in its own legal jurisdiction, the cost to privately chase funds is prohibitive, but for a sovereign, it becomes a matter of principle (sovereigns have an entire legal system to use). You can use the Malaysian governments case of chasing the 1MDB funds as an example. It took time, but assets were seized all over. The UBO (ultimate beneficial owner) is always there somewhere, so peel back enough of the onion and you'll find Ghosn.

It's true that it's becoming more and more difficult to hide cash within the banking system. With Europe's recent deployment of big data tools, I think the major hurdle now for the authorities is figuring out how to efficiently use all the information that is now at their disposal.

However, you probably know that there are facilitators that can convert cash to hard assets such as real properties through opaques structures in jurisdictions with loosey goosey AML/KYC hurdles. Even within the banking system and working with US correspondent banks, it's not rare to have USD-denominated TTs going to beneficiaries on Treasury's SDN list, with paperwork that have certain, rather important fields left blank or even blacked out. US subsidiaries of certain European banks, for example, are very experienced with this.

And then, there are places like the Singapore Freeport where you can securely store your assets, cash or portable hard assets, more likely to be the latter, without having to declare them, AND come and go without even going through passport control so there is no government record of you ever arriving or leaving. (Yes, the airline will have the passenger record, but you wouldn't know to ask them and for which dates unless you had some basic intel.)

But yeah, it will likely drag his whole family into the saga because they will be targeting the UBO not just in his name but his wife's, his daughter's et al.

[sk_tle]

Some people tend to think this is driven by passion but the fine art and vintage collectible cars markets are really maintained high by money laundering schemes. Theses are only two examples of markets involved.