Defense Says American Charged in Ghosn Pay Case Not Involved

FILE - In this Aug. 18, 2021, file photo, former Nissan Motor Co. executive Greg Kelly speaks during an interview with The Associated Press in Tokyo. Eugene Hoshiko/AP
FILE - In this Aug. 18, 2021, file photo, former Nissan Motor Co. executive Greg Kelly speaks during an interview with The Associated Press in Tokyo. Eugene Hoshiko/AP
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Defense Says American Charged in Ghosn Pay Case Not Involved

FILE - In this Aug. 18, 2021, file photo, former Nissan Motor Co. executive Greg Kelly speaks during an interview with The Associated Press in Tokyo. Eugene Hoshiko/AP
FILE - In this Aug. 18, 2021, file photo, former Nissan Motor Co. executive Greg Kelly speaks during an interview with The Associated Press in Tokyo. Eugene Hoshiko/AP

The defense for former Nissan executive Greg Kelly said Wednesday there was no evidence or motives linking him to alleged under-reporting of his ex-boss Carlos Ghosn’s compensation.

Kelly’s chief defense lawyer, Yoichi Kitamura, said in wrapping up the defense’s arguments that Kelly is innocent and he had no knowledge of the complex calculations over Ghosn’s unpaid remuneration, tabulated and updated by Nissan Motor Co. secretariat official Toshiaki Ohnuma.

Kitamura told the Tokyo District Court prosecutors had presented no evidence of exchanges about Ghosn’s compensation between Kelly and Ohnuma.

“Kelly was not involved at all,” Kitamura said.

Kelly, who sat quietly with the defense lawyers wearing his usual red tie and dark suit, pleaded innocent at the opening of the trial a year ago.

Kitamura also stressed Kelly had been just trying to find legal ways to pay Ghosn after Ghosn's retirement.

“Greg Kelly is a lawyer. Even if he had wanted to prevent Carlos Ghosn from leaving, would he have committed a crime?” said Kitamura, who is famous in Japan for winning acquittals in a nation with a conviction rate higher than 99%.

“There is no motive at all for Kelly to carry out such an illegal act.”

Kelly, an American, was in semi-retirement in the US when Nissan lured him back to Japan, on the pretext of attending a meeting. He was arrested in November 2018, at the same time as Ghosn. But Ghosn jumped bail and fled to Lebanon in late 2019. Lebanon does not have an extradition treaty with Japan.

At the center of the case is a 1 billion yen ($9 million) a year pay cut Ghosn voluntarily took, starting in 2009, when disclosure of big executive salaries became legally required in Japan. Ghosn was worried about a public backlash as hefty executive pay packages are not common in Japan.

Prosecutors say that money, totaling about 9 billion yen ($80 million) should have been reported as compensation even though it was never paid or stipulated in a formal contract.

In wrapping up their arguments last month, prosecutors demanded two years in prison for Kelly. A verdict is not expected until March.

Critics of Japan's judicial system have blasted the cases against Ghosn and Kelly as “hostage justice."

Ghosn told The Associated Press in a recent interview he believes there was a conspiracy, concocted by officials at Nissan who feared greater control by French alliance partner Renault.

“Greg is paying the price of his honesty and his being straightforward,” Ghosn said of Kelly. “He is the only person who isn’t lying in the process.”

In a sign that Kelly is gaining support back home, Rahm Emanuel, former Chicago mayor, President Joe Biden's nominee for ambassador to Japan, told a Senate committee confirmation hearing last week that looking into Kelly’s case was “a top priority.”

“The No. 1 responsibility of an embassy and an ambassador is to make sure the safety, and ensure the safety, of a US citizen on foreign soil,” he said in response to a question from Republic Sen. Bill Hagerty of Tennessee, the state where Kelly lived before his arrest.

“You have my word,” Emanuel said.

Hagerty, ambassador to Japan until mid-2019, said Kelly’s human rights were violated, and his name should be cleared.

Nissan, the automaker behind the Leaf electric car and Infiniti luxury models, did not fight charges in the same trial as a corporate entity.

Separately, two Americans extradited from the US on charges of helping Ghosn escape Japan were convicted in July. Michael Taylor was sentenced to two years in prison. His son Peter Taylor was sentenced to a year and eight months.



Senior Israeli Army Officer among Suspects in ‘Leaks Scandal’

 A photo published by Israeli Channel 12 of the central suspect in the leaks case.
 A photo published by Israeli Channel 12 of the central suspect in the leaks case.
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Senior Israeli Army Officer among Suspects in ‘Leaks Scandal’

 A photo published by Israeli Channel 12 of the central suspect in the leaks case.
 A photo published by Israeli Channel 12 of the central suspect in the leaks case.

The arrest of a new senior army officer involved in a suspected leak of classified Gaza documents has sparked a wave of political controversy and public outcry in Israeli politics.
In the past few days, Israeli Prime Minister Benjamin Netanyahu and some individuals close to him tried to downplay the so-called “leaks scandal” and portrayed it as “just an ordinary incitement against the PM.”
But on Monday, an Israeli army officer was arrested by police investigators as part of the probe into leaked classified documents from the Prime Minister’s Office.
Hebrew media reports said the officer was relaxing with his wife and children in a hotel in the southern city of Eilat, when a force of masked policemen raided the place, arrested him, and took him to an investigation room in the Tel Aviv area without providing further information.
Observers suggest this officer is one of the security personnel who leaked and falsified documents from the military to compromise efforts to secure the release of Israeli hostages held by Hamas.
The arrest is the fifth so far in the high-profile investigation. The five suspects include a civilian spokesman from Netanyahu's circle and four members of the security establishment.
Hebrew media outlets on Monday uncovered new information about the central suspect in the case, Eli Feldstein, the only person whose name was allowed to be published. Feldstein has previously worked for National Security Minister Itamar Ben Gvir. He then worked as a spokesman for Netanyahu from soon after the Hamas attack in southern Israel in October 2023.
According to people close to the investigation, one of the tasks assigned to Feldstein in the PM’s office was to “share with various media outlets security information that serves Netanyahu.”
Feldstein is suspected of receiving secret documents from army officers and then sharing them with a false interpretation to both the German Bild newspaper and the UK’s Jewish Chronicle, which are both close to Netanyahu and his wife.
The scandal started when details from a secret document were published by the German Bild newspaper on Sept. 6.
The report cited a document captured in Gaza indicating that Hamas’s main concern in ceasefire negotiations with Israel was to rehabilitate its military capabilities, and not to alleviate the suffering of Gaza’s civilian population. Bild said it had obtained the spring 2024 document exclusively, without offering further details. It said the document was found on a computer in Gaza that belonged to now-slain Hamas leader Sinwar.
Around the same time, Jewish Chronicle published a report saying that Hamas leader Yahya Sinwar planned to smuggle hostages through the Philadelphi Corridor to Egypt.
Netanyahu has used those reports to justify his control over the Philadelphi Corridor along Gaza's border with Egypt and to thwart the hostages deal.
In the past days, the scandal has provoked sharp criticism from opposition leaders and the families of hostages.
The independent media said it highlighted “the corruption that knows no bounds” in the Netanyahu government.
Yossi Verter wrote in the Haaretz newspaper that, “Recent scandals among those in Netanyahu's inner circle reveal the nature of his entourage – a crime organization that places him above the country and national security concerns.”
Speaking about the main suspect in the case, Feldstein, Verter wrote, “The new star, burning with motivation to prove himself, quickly adapted to the office's corrupt semi-criminal atmosphere, its moral and ethical decay and its culture of lies, manipulation, and disinformation.”
At the Maariv newspaper, Shimon Hefetz, a colonel in the army reserve and military secretary to three Israeli presidents, spoke on Monday at the 29th anniversary of the assassination of Prime Minister Yitzhak Rabin, saying: “(The assassination) will forever be a shocking day for Israeli democracy, as it is happening in the Prime Minister's office today.”