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.



Global Interest in Israel's Air-Launched Ballistic Missiles

This handout picture released by the Israeli army on October 26, 2024, shows an Israeli fighter jet departing a hangar at an undisclosed location in Israel. (Photo by AFP)
This handout picture released by the Israeli army on October 26, 2024, shows an Israeli fighter jet departing a hangar at an undisclosed location in Israel. (Photo by AFP)
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Global Interest in Israel's Air-Launched Ballistic Missiles

This handout picture released by the Israeli army on October 26, 2024, shows an Israeli fighter jet departing a hangar at an undisclosed location in Israel. (Photo by AFP)
This handout picture released by the Israeli army on October 26, 2024, shows an Israeli fighter jet departing a hangar at an undisclosed location in Israel. (Photo by AFP)

Israel's effective use of air-launched ballistic missiles in its airstrikes against Iran is expected to pique interest elsewhere in acquiring the weapons, which most major powers have avoided in favor of cruise missiles and glide bombs.
The Israeli Army said its Oct. 26 raid knocked out Iranian missile factories and air defenses in three waves of strikes.
Researchers said that based on satellite imagery, targets included buildings once used in Iran's nuclear program, according to Reuters.
Tehran defends such targets with “a huge variety” of anti-aircraft systems, said Justin Bronk, an airpower and technology expert at London's Royal United Services Institute.
Cruise missiles are easier targets for dense, integrated air defenses than ballistic missiles are.
But ballistic missiles are often fired from known launch points, and most cannot change course in flight.
Experts say high-speed, highly accurate air-launched ballistic missiles such as the Israel Aerospace Industries Rampage get around problems facing ground-based ballistic missiles and air-launched cruise missiles - weapons that use small wings to fly great distances and maintain altitude.
“The main advantage of an ALBM over an ALCM is speed to penetrate defenses,” said Jeffrey Lewis, director of the East Asia Nonproliferation Program at the James Martin Centre for Nonproliferation Studies at the Middlebury Institute of International Studies in California.
“The downside - accuracy - looks to have been largely solved,” he said.
Ground-launched ballistic missiles - which Iran used to attack Israel twice this year, and which both Ukraine and Russia have used since Russia's invasion in 2022 - are common in the arsenals of many countries. So, too, are cruise missiles.
Because ALBMs are carried by aircraft, their launch points are flexible, helping strike planners.
“The advantage is that being air-launched, they can come from any direction, complicating the task of defending against them,” said Uzi Rubin, a senior researcher at the Jerusalem Institute for Strategy and Security, one of the architects of Israel's missile defenses.
The weapons are not invulnerable to air defenses. In Ukraine, Lockheed Martin Patriot PAC-3 missiles have repeatedly intercepted Russia's Khinzhals.
Many countries, including the United States and Britain, experimented with ALBMs during the Cold War. Only Israel, Russia and China are known to field the weapons now.
The US tested a hypersonic ALBM, the Lockheed Martin AGM-183, but it received no funding for the 2025 fiscal year.
Because it has a large arsenal of cruise missiles and other types of long-range strike weapons, Washington has otherwise shown little interest in ALBMs.
A US Air Force official, speaking on condition of anonymity, said ALBMs are not used in Air Force operations.
Raytheon's SM-6, an air-defense missile that has been repurposed for air-to-air and surface-to-surface missions, also has been tested as an air-launched anti-ship weapon, said a senior US defense technical analyst, who declined to be identified because the matter is sensitive.
In tests the missile was able to strike a small target on land representing the center of mass of a destroyer, the analyst said. Publicly, the SM-6 is not meant for air-to-ground strikes.
Because ALBMs are essentially a combination of guidance, warheads and rocket motors, many countries that have precision weapons already have the capability to pursue them, a defense industry executive said on condition of anonymity because of the sensitivity of the matter.
“This is a clever way of taking a common set of technologies and components and turning it into a very interesting new weapon that gives them far more capability, and therefore options, at a reasonable price,” the executive said.