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Carlos Ghosn’s Brazen Escape from Japan

83 points| wallflower | 3 years ago |wsj.com

184 comments

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[+] hannyaharamita|3 years ago|reply
A popular narrative is that the choice is between Ghosn being guilty or a victim of a Nissan management coup d'etat.

This is a false dichotomy, it is also quite possible that illicit activity by Ghosn provided convenient ammunition to people with incentive to have him removed.

People pushing the binary narrative focus on how the Japanese prosecution seems over the top for what is essentially a financial reporting law violation. However, the reporting issues are only two of the allegations.

The other two seem more serious, breach of trust in getting Nissan to cover collateral for FX losses, and misappropriation of funds in which $15 million was sent to a Nissan dealership, a portion of which was then transferred to a company controlled by Ghosn.

Adding to these the French arrest warrant on charges of money laundering and abuse of company assets, which seem to include misuse of company funds to allegedly pay for a lavish personal party at Versailles, one must wonder if online Ghosn supporters are organic or reputation management staff.

[+] eternalban|3 years ago|reply
Asiatimes.com had a 4 part series on Ghosn. BusinessInsider as well iirc did a piece on him. Both are damning of Nissan and Japanese legal system. A related story also not broadcast loudly is that of an American lawyer that also got a taste of Japanese jails.

Ghosn is very credible here, if unlike WSJ, you wish to consider the facts. "[I]t is quite possible" is not factual matter.

This story involves industrial policy and interests of at least two major powers: France and Japan. In that scale of matters, Ghosn is a little guy. Good for him for escaping what sounds like hell.

https://asiatimes.com/2022/04/ghosn-shares-damning-new-docum...

https://www.nytimes.com/2022/02/04/business/michael-taylor-c...

[+] Cupertino95014|3 years ago|reply
Since:

1) He had essentially zero chance of being acquitted, and

2) He was the victim of Nissan executives who didn't like having a gaijin be their boss:

In his shoes, I would feel morally justified in escaping. Financial crimes deserve a financial penalty.

If you disagree with that, suppose Britney Griner somehow escaped from Russian "justice"? How would you feel then?

Edit. Everyone talking about hypothetical burglaries and $10 thefts from poor people: please explain what, exactly, Ghosn was accused of stealing, and from whom?

[+] wpietri|3 years ago|reply
> Financial crimes deserve a financial penalty.

Nah. Financial crimes cause real harm. And financial penalties frequently aren't sufficient disincentive.

Imagine that I have no assets but am a good talker. So I go out an launch an "investment fund" that is just a Ponzi scheme. Let's suppose I take in $50m, pocket $10m, and spend the rest on "investment returns" and appearing to run a real business. I live high on the hog for 5 years before it all falls apart, at which point many too-trusting people have lost their lifes' savings. What is the correct penalty?

There's no way a financial penalty can be correct here because all of my money was stolen. If the government just sets me back the zero I started at, what punishment is that? Where's my disincentive to do it all again?

If anything, I'd argue financial crimes are more likely to deserve jail time. People who steal food may be doing it out of necessity. But nobody stealing millions through financial crimes can claim desperation. I don't think people who use suits to rob instead of ski masks are any less thieves.

[+] justapassenger|3 years ago|reply
> Financial crimes deserve a financial penalty.

Financial crimes, aka crimes rich people commit, to be richer, deserve much more harsh treatment that we give them today. You can go to jail for years for shoplifting (aka crimes poor people commit) few thousand dollars worth of goods. People should be much more often sentenced to go to jail for life for committing millions of dollars worth of financial crimes.

[+] JumpCrisscross|3 years ago|reply
> please explain what, exactly, Ghosn was accused of stealing, and from whom?

Should every company executive be free to steal millions of dollars from their companies [1][2]? Be free to "renovate homes for Ghosn in Rio de Janeiro, Beirut, Paris and Amsterdam" on pensioners' dimes? Get a free pass from investigation by multiple countries [3] because they ran a PR campaign while they were pillaging?

Anyone informed defending Ghosn is essentially rejecting the rule of law, full stop. He's wanted for serious crimes in multiple countries with discordant agendas.

[1] https://www.reuters.com/article/us-nissan-ghosn-allegations-...

[2] https://en.wikipedia.org/wiki/Carlos_Ghosn#Initial_arrest

[3] https://www.bloomberg.com/news/articles/2022-04-22/france-is...

[+] orf|3 years ago|reply
That’s ridiculous. A crime is a crime, and stealing money - be it physically or on paper - has real repercussions to real people. It deserves more than a financial penalty.
[+] MerelyMortal|3 years ago|reply
> Financial crimes deserve a financial penalty.

I'm not sure what you mean by it, can you please give an example?

For most people, money represents the time out of their lives it took to earn it.

If you steal $10 from someone, and they earned it from a job that pays $10/hour - you didn't steal $10, you stole an hour of their life.

[+] themitigating|3 years ago|reply
"He had essentially zero chance of being acquitted" - So if I commit a crime it's morally acceptable to flee justice if the probability or evidence exceeds a certain threshold? In other words, the more proof there is that I committed a crime gives me more justification to avoid punishment?

"He was the victim of Nissan executives who didn't like having a gaijin be their boss:" Prove it.

"If you disagree with that, suppose Britney Griner somehow escaped from Russian "justice"? How would you feel then?" - They aren't related cases with completely different circumstances and crimes. It also doesn't matter.

To bad Britney Griner doesn't have the $15 million~ that Ghosen needed to escape. https://fortune.com/2020/01/10/carlos-ghosn-net-worth-2020-f...

[+] sockaddr|3 years ago|reply
> Financial crimes deserve a financial penalty

Eyeball related crimes deserve an eyeball-related penalty, car crimes deserve a car penalty, gun crimes deserve a gun penalty.

I mean, really. Did you even try to think of one counter-example to your claim before you wrote it?

[+] PedroBatista|3 years ago|reply
> He was the victim of Nissan executives who didn't like having a gaijin be their boss:

Largely agree.

> Financial crimes deserve a financial penalty.

That's a very old aristocratic view of financial "wrong-doing", still persists somewhat these days because the idea that for "people with money" with a good reputation, being condemned in public and losing their good name is already a penalty big enough.

That's... let's just say this line of thinking should stay in the past.

[+] xbar|3 years ago|reply
Ghosn "the victim" is my favorite part of this post.
[+] remembermylo|3 years ago|reply
1) not sure this is really relevant. If you don't trust the country's laws you are doing business in dont do business there. Part of the reason I dont plan on opening a factory in Liberia is because i wouldnt trust their legal system to protect me. Im happy working in USA even though their legal system shares suspicious statistics with Japan.

The Feds in USA have a 97% guilty rate, so this same logic could be used basically saying because defendants in federal USA trials have virtually no chance of getting off scott free they can escape and we shouldnt call that injustice.

[+] refurb|3 years ago|reply
Ignoring all that - if I were in his shoes I’d do the same - guilty or innocent.

I mean, even if I wasn’t in his billionaire shoes I’d do the same - if facing a long imprisonment in a foreign country I’d take chance at escaping any day.

[+] Teever|3 years ago|reply
> Financial crimes deserve a financial penalty.

Can you explain this one?

Do you believe violent crimes require a violent penalty?

[+] LatteLazy|3 years ago|reply
I disagree about financial crimes deserving (only) financial penalties, but I think you're broadly right. It's all but impossible for a native to get a fair trial in Japan, let alone a foreigner...
[+] throwawaylinux|3 years ago|reply
1) Based on what? The fact that evidence against him was overwhelming(?), or this https://en.wikipedia.org/wiki/Conviction_rate

"Japan

The conviction rate is 99.3%. By only stating this high conviction rate it is often misunderstood as too high—however, this high conviction rate drops significantly when accounting for the fact that Japanese prosecutors drop roughly half the cases they are given. If measured in the same way, the United States' conviction rate would be 99.8%."

And he has since had to settle a massive fraud charge from the US SEC and is the subject of an arrest warrant from France now too. Bit hard to just dismiss the whole thing as being due to racist authoritarian Japan.

2) What was he a victim of? There are allegations and counter allegations, why should he have the presumption of innocence but not these "Nissan executives"?

> In his shoes, I would feel morally justified in escaping.

I'm guessing most CEO types would feel moral in personally deciding the punishment for their crimes is unfair and therefore they are justified in committing more crimes to get away with their earlier crimes...

> If you disagree with that, suppose Britney Griner somehow escaped from Russian "justice"? How would you feel then?

An emotionally charged question because of the situation now, but there are many who get "unfair" sentences for drugs all over the world including people jailed in Russia for similar crimes, people executed in South East Asia and the Middle East for drugs, and people locked away in the US for years on non violent crimes based on legislation and prosecutions orchestrated by the likes of President Biden and Vice President Harris.

Not that you can't be against all of those things, but it's a pretty huge crutch that seems to be trying to equate Japan's justice system with Russia's, and harsh penalties for personal drug use with the often very lenient punishments for fraud and embezzlement. "If you aren't with Ghosn then you're with Putin" is a bridge too far.

> Edit. Everyone talking about hypothetical burglaries and $10 thefts from poor people: please explain what, exactly, Ghosn was accused of stealing, and from whom?

Some millions of dollars. From company shareholders.

[+] someperson|3 years ago|reply
The article ends with Ghosn entering the box.

> This article is adapted from “Boundless: The Rise, Fall, and Escape of Carlos Ghosn” by Wall Street Journal reporters Nick Kostov and Sean McLain, to be published on Aug. 9, 2022

[+] russellbeattie|3 years ago|reply
It makes you wonder how hard it would be for someone in the US to do the same... Let's imagine a hypothetical situation where a prominent wealthy person was indicted for some random federal crime, say 18 U.S.C. § 372 or 2384, etc. I'd bet they wouldn't need to hide in a box to flee to a country without an extradition agreement, like Russia for example.

One would hope we'd be able to prevent something like that, but it's a big country.

[+] rado|3 years ago|reply
It's good that this case pulled the lid off (sorry) Japan's questionable justice system. See also: child abduction in mixed marriages https://www.smh.com.au/world/asia/their-children-were-taken-...
[+] iforgotpassword|3 years ago|reply
Doesn't the lid get pulled off every couple years and then nothing? I feel I read about a few cases over the decades. Somehow Nintendo and Anime seem to overpower that quite well. ;-)
[+] EdwardDiego|3 years ago|reply
Yeah my brother had a child with his Japanese wife last year, and she became very unwell mentally post-partum, but won't seek treatment. He's desperately unhappy, but he has to stay in the marriage, as he has no chance in hell of seeing his son if he leaves, foreign spouses never win a custody dispute in Japanese courts, and Japan does not do shared custody.
[+] CamperBob2|3 years ago|reply
Wow, not hard to see how the next 9/11 will happen. The staff at the charter jet terminal were almost criminally clueless.

"So, how exactly does the security work around here, anyway? Is this huge crate going to be X-rayed? Because it needs to not be X-rayed. Also, here's a $10,000 tip, just to make sure you, um, don't remember us."

[+] Nextgrid|3 years ago|reply
I'm not sure how much this is a 9/11 risk?

As far as I know the protection against "taking a jet and crashing it into a building" is a squadron of fighter jets that are quickly dispatched to (if necessary) shoot down any plane on a risky path. That's exactly what happened when some mentally unstable airport employee "stole" a plane and committed suicide by crashing it into the water after a few stunts.

The other risk would be to take passengers hostage, but in case of a chartered plane I think it's fair game to let the customer themselves decide on the level of security they need - presumably they aren't harboring any terrorists/hijackers, and I would think hijacking a private corporate flight is really low on terrorist groups' bucket lists in terms of the expected "payoff".

[+] pfisherman|3 years ago|reply
It’s possible that the operatives knew something about Japanese customs and etiquette and the $10,000 tip was intended to distract the employees at the airport.

If they are worried about navigating a delicate social situation - rejecting the money without offense / loss of face - then they aren’t thinking about the boxes or the flimsy cover story.

The article said that this scenario - rejecting tips from uninformed foreigners - was not uncommon; but that the amount involved and what that amount implied about the potential of a future business relationship made the situation more delicate.

[+] prvit|3 years ago|reply
lol, what’s the concern? Someone will blow up their private jet with 5 people on board? boo-hoo.

There are no hardened (or any) cockpit doors on PJs, you eat with metal cutlery and often serve yourself drinks from large glass bottles.

Want to fly a plane into a building? Anyone can get a pilots license, there are no background checks. You can just rent a plane and pull off “the next 9/11”, no amount of terminal security can solve this.

What exactly is your concern? What would better security at a private jet terminal prevent?

It’s super unusual that there were any pre-departure controls at all. I’ve never had my stuff checked while flying private, except occasionally by customs, at arrival.

[+] trhway|3 years ago|reply
Laws, including custom checks, passport checks, etc. are for regular people. There was even a recent program on NPR how different is the life of super-wealthy.

And while super-wealthy is a totally different game, even upper middle class money already distort the reality in a much more comfortable way. I'm watching a case in Santa Clara of an NVIDIA director, a Russian immigrant, who 2 years ago being drunk and speeding on I-80 hit several cars and killed a woman (all that "allegedly" as the moron does evidently have money for lawyers). It happened about the same time as a famous actor in Russia driving drunk killed a man in an accident, and that sparked my curiosity to compare how the cases would go. The Russian actor, a relatively decent human being, chose a path of a regular person and instead of applying all his star power/etc. he is already almost 2 years into his 7 years prison term. The NVIDIA director on the other hand totally lawyered up, and there have since then been uncountable motions/hearings/etc. with no sign of progress. My guess is that he will have that charade going for a long as possible - given the money he makes, the lawyers is just a minor cost of doing business for him - and if/when things start to come to an outcome he doesn't like, he would just leave the country, doesn't even need a box like Ghosn, and go back to Russia or anywhere else where no extradition treaties with US (his bail is just $275K, pretty laughable given the NVIDIA director comp).

[+] nashashmi|3 years ago|reply
Watch Carlos Ghosn: Last flight. I watched it on emirates airlines. And it was good.
[+] kazinator|3 years ago|reply
I was in Japan in early 2019, just around the time he released a statement that was aired on TV. I have to say, Ghosn is very charming; he makes you want to believe every word he says.
[+] closedloop129|3 years ago|reply
How good is he as a manager? Would Nissan be a better company if they had kept him at the top?
[+] theflyingelvis|3 years ago|reply
Props to Ghosn. Stuck it to the man.
[+] maybelsyrup|3 years ago|reply
Ghosn IS "the man". People who stick it to the man don't have access to Green Berets and private jets and multiple citizenships.

This story can be understood as bickering between two factions or groups of "the man": on the one side the Japanese legal system, hardly a champion of the underdog; and on the other, one of the world's richest and most powerful people, the sort of person who does not (cannot) arrive at his station in life without being a special type of ruthless sociopath, whether they're guilty of literal crimes or not along the way.

So like it's a highly entertaining cage match, but rooting for one or the other if you're not also part of the ownership class is kinda a coin toss.

[+] yomkippur|3 years ago|reply

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[+] mrtksn|3 years ago|reply
He is rich and able, I would have done the same if I was in his shoes so I don't judge him from moral perspective. I'm on the same page with the Germans on this one, i.e. it shouldn't be a crime and it's not wrong to escape from prison.

That said, not being him, I really don't like the narrative built around how Japanese prisons are horrible and it's justified to not serve for crimes in Japan. I also wonder if the "Japanese prisons and legal system are not good" editorials were coordinated.

IMHO, if Japanese system is that bad, People should stop going to Japan or take action to fix it for everyone instead of normalising the getting of scott-free for the elite.

[+] KerrAvon|3 years ago|reply
it’s really not that clear cut, though
[+] zen_1|3 years ago|reply
I hope he'll be thrown in prison (after a fair trial ofc) along with Do Kwon, Alex Mashinsky and all the other financial criminals we've seen pop up recently.
[+] nashashmi|3 years ago|reply
Remember when a person gets accused of financial impropriety after years of abuse, it usually is a cartel based takedown.
[+] nxm|3 years ago|reply
Has he been proven guilty? I like to believe innocent until proven guilty
[+] collegeburner|3 years ago|reply
imo his concerns about the japanese justice system arent all wrong. so not that simple. if i was in his position i'd probably do the same.