Carlos Ghosn’s Brazen Escape from Japan
wsj.com
wsj.com
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.
O: https://www.reddit.com/r/japanlife/comments/j4ccy4/how_being...
1: https://www.reddit.com/r/japanlife/comments/tcxseo/arrested_...
The video is now private (https://www.youtube.com/watch?v=DYhWZ0IYFSg) but for some reasons I have a backup of the video. This link is a fair re-upload: https://www.youtube.com/watch?v=X4Fz9ThQvH4
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...
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?
Can you explain this one?
Do you believe violent crimes require a violent penalty?
It’s certainly a common belief, imprisoning someone is inherently a violent penalty.
In many cases, yes.
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.
This is most certainly false. A crime is a violation of a law. Laws are passed by groups of people, not handed down by some infinitely wise and just being. For example, in many African nations, it is illegal to be gay. Would someone imprisoned for the "crime" of being gay be justified in escaping? Would Julian Assange be justified in escaping his dungeon for exposing the crimes of the US government?
I cannot believe the stunning inability for people to understand that laws are not based on some sort of immutable, objective moral code but are invented by human beings. Do you think Harriet Tubman was a bad person because she helped those who violated the law? Would you have contacted the authorities immediately when you saw an escaped slave, due to their violation of the law?
America regularly support people who are charged with normal crimes that have obvious political undertones, as they should. This is an unmitigated good.
Example: https://en.wikipedia.org/wiki/Chen_Guangcheng
Other popular examples exist. These cases are also often very polarizing for the people of the country who is claimed to have been the victim of some political crime.
Note the definition of political crime ( https://www.merriam-webster.com/dictionary/political%20crime ) exactly makes the link: “political offenses … exclude any possibility of extradition.”
What makes up a political crime? By definition it can be subjective but some entire categories are usually included.
On the one hand, Assange is considered by many to be a journalist doing journalistic things, while others argue he committed espionage doing political things as some kind of spy. Prosecution for either is usually considered a political persecution worthy of asylum.
Ecuador granted Assange political asylum because of the U.S. investigation into Assange for his publications that were in the public interest.
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.
I actually think jail time isn’t enough a disincentive without the financial penalty because otherwise it can just be a cost of doing business.
For example there was a chronic thief in SF that stole peoples’ laptops from cafes. She was jailed multiple times but because the police had no way of knowing where she hid the stolen goods they were still never recovered and presumably she kept her earnings even after jail time.
"You can't get blood from a stone"
This effectively means financial crimes can never be repaid in full, and frequently only small percentages get repaid. It also means the government can never hope to actually do anything to help other than punishment.
Going after financial crimes to protect victims ... just doesn't work.
Somehow this is enormously at odds with people's expectation of justice, and people either just can't or refuse to believe that's really how it works.
People should be a little smarter and not fall for Ponzi schemes. Furthermore, many people who invest in such schemes, understand how they work but hope to get profit before it collapses.
Blaming the victims is not a solution.
This logic can be applied to justify stopping punishing any crime (“well, they should have stayed at home if they did not want to get mugged”, “they should know better than leave their house for the week if they did not want to get burglarised”, etc).
Just recently it has come to light that a crooked funeral fund here in Australia has been preying on indigenous people for years with no prospect on their deposits being returned
I also think a linear "smartness" model misses it. Both intelligence and knowledge are multidimensional. Everybody has strengths and weaknesses, and well-run scams target particular weaknesses.
Money can be repaid. You can't be unraped.
You might be thinking about someone stealing a person's TV but what about their life savings. What about a corporation that goes bankrupt because of financial misdeeds and people lose their jobs? My dad lost his job in the mid 90s and the effects on my family involved massive stress for years.
Financial concerns/economy seems to be the most important issue to voters in almost every election ever.
It's the 5th highest reason for divorce at 36% (https://www.insider.com/why-people-get-divorced-2019-1)
It can also can result in physical issues. Maybe you can't afford healthy food, maybe you can't afford health care due to financial loss.
I couldn't find statistics but I can't imagine that in cases of theft being repaid 100% or even 50% of your loss occurs that frequency (but no source so..)
In other words some financial crimes are worse than violent crimes.
We spent half a century sending people to jail for years or decades for possessing a bit of marijuana. You can be sent to jail for non-payment of speeding fines, or fishing at the wrong time of year. Or peacefully protesting government policies.
Violent and financial/corruption crimes are in categories to themselves.
The former for obvious reasons. The latter, because they corrode the institutions that make civilization work. Let financial crime--specifically corruption--run rampant and you'll lose more lives to riots, civil war or worse than to murder.
It's no secret that car factories in peacetime make good tanks in war. Also, in peacetime, they employ many voters and their families. Ghosn was an immensely powerful man. He used his influence for personal enrichment. Enrichment his family collaborated to defend. Kings' courtiers had strict punishments for disloyalty for a reason. Much of that was personal. But some tied to the integrity of the state.
We cannot excuse multimillionaires from running from the law while claiming to have a just society just because they had good PR. Ghosn, and his family [1], must be held accountable.
[1] his son, Anthony Ghosn, facilitated the escape [a] as did his daughter, Maya Ghosn, who is profiled in the article
[a] https://www.reuters.com/article/us-nissan-ghosn-taylor-bail-...
Let's say you sell military secrets to an enemy that results in nuclear destruction of your country and deaths of millions of people. The act of exchanging that secret for money was nothing more than moving some bits around on the internet, certainly non violent itself. Would you retain this strange protection from responsibility for consequences of your action in this case as well?
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.
A home burglary where no one's present is non violent. Do you think that should be punished lightly? It causes orders of magnitude less damage than a lot of financial crime.
From https://www.law.cornell.edu/wex/burglary
Typically this means you've broken into a domicile (sometimes lesser charges of Burglary exist for non-domicile, eg a vacant commercial building). If you break into someone's home, at night, while it's occupied, the law presumes you intended to do violence.
This presumption is usually correct!
Well yes. But I explicitly said "no one's present". And it usually happens during the day where I live, because that's when people work.
Someone stealing my life savings will have a much greater impact than someone punching me in the face.
* I am considering committing a crime that is worth X to me.
* The price (punishment) for this crime is Y.
* I only have to pay the price if I'm caught and convicted, both of which have some probability between 0 and 1.
So the effective price for committing this crime is Y multiplied by the probability I'm caught and convicted.
If
X > P(caught) * P(convicted) * Y
Then I should commit the crime. Otherwise, it's not worth it.For financial crimes, it's safe to say that P(caught) and P(convicted) get lower and lower the richer and more powerful you become. You have access to the best accountants and attorneys, making certain financial crime reliably profitable and increasingly attractive.
Therefore it stands to reason that while there is a line past which a punishment becomes excessive, an effective punishment must lead would-be criminals to decide that the risk is not worth it. Until this is the case, we have to either increase P(caught & convicted), or else increase Y; we can't do neither.
Probably increasing both is best; an increase in fines (Y) could fund the increased enforcement (P) necessary. Good luck passing those laws, though.
https://www.pubdef.ocgov.com/programs/dismissal-and-re-sente...
"only a few dozen people were sent to state prison for marijuana convictions under Harris’ tenure." https://www.mercurynews.com/2019/09/11/kamala-harris-prosecu...
"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...
Oh, sure. Like underhanded whisper campaigns and unspoken agreements are susceptible to "proof."
I think GP was referring to the fact that Japan has an over 99% conviction rate.
Even if we presume that Japan has unusually high quality prosecutors and judges, that rate is so high that I think it’s reasonable to presume a fair number of innocent people are getting convicted (which happens lots of places, of course, but Japan’s conviction rate is still unusual).
https://web.archive.org/web/20220712033655/https://www.nippo...
I don't think it's reasonable to assume anything happens if there's an alternative explanation.
What percentage of convictions are accompanied by confessions?
I don't know the answer to that, actually.
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?
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.
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...
And they were all quite happy to go along with it, for a long, long time. Did he hold a gun to their heads and make them hire him? And couldn't their Boards just fire him?
Hypotheticals, sure. I’m not familiar with his every crime. Just the big ones.
> Did he hold a gun to their heads and make them hire him? And couldn't their Boards just fire him?
It sounds like the answer to the above questions, for you, is yes. Fraud. Embezzlement. All okay, because the ultimate victims, the shareholders, either didn’t push back better or were further defrauded by a possibly corrupt, possibly incompetent Board. We can’t know either way because the guy up and offed to Beirut, where he sits a fugitive of multiple international arrest warrants.
So there we are. The people in charge of controlling him, the people whose job it is to supervise him, didn't.
Sure. I made an analogy to Enron elsewhere.
But their incompetence, potentially collusion, doesn’t excuse Ghosn. And the path to holding them responsible is through him. The flip side of this, also unexplored, is that people with skeletons in their closets don't tend to hide them alone. Who else is complicit? Who among them was blackmailed, and which decisions were unduly influenced by that?
It doesn't make you a monster if you just happen to admire a criminal. That's human nature; people have admired all sorts of criminals, especially stylish ones who get away with things. There's a whole film genre about them.
But, like, if we're going to discuss them on a message board, we should probably be clear about the fact that Danny Ocean and his gang deserve to be --- in fact, really kind of need to be --- in prison.
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.
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.
"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.
> 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
One would hope we'd be able to prevent something like that, but it's a big country.
How can a parent take a kid out of the country without the consent of the other parent without it being categorized as kidnapping. Being that the kid is an American citizen can't the U.S. system get Japan to send this kid back(if the mother is only Japanese and not the kid). Didn't America extradite the Americans involved in Ghosen's escape? So they should have agreements this such legal matters to no?
P.s. I really didn't agree with American extraditing it's citizen in Goshen's case.
And I mean, you will have your cross to bear eventually. That's life.
She really needs professional assistance but won't seek it, and her family have been slow to move her towards doing so, as her Dad is a prominent religious official in their small town, and there's some shame in having an unwell daughter.
But, recently they've acknowledged that there is something that needs treatment and have been gradually approaching it, which gives my brother hope. He loves her, of course, but there's marriages worth fighting for, and marriages where you're being abused. Currently, his is the latter.
So... not super similar ;)
"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."
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".
It's 16 miles from JFK airport to Manhattan. A jet plane can fly this distance in less than 5 minutes at sea level, within a normal flight envelope.
There's latency recognizing from the ground that an airliner needs to be intercepted, launching alert fighters, and getting authorization to shoot down.
Trust is involved in allowing a big container to be loaded on a plane.
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).
I don’t know about the this. Money and fame didn’t save Phil Spector and it won’t save him.
Customs checks hardly affect regular people. Security checks are an optional service you can pay for, but probably won’t bother if it’s your own plane and isn’t full of hundreds of random people. Rich people still have passport checks, they just pay the government to send the passport control people to their private terminal (which is no different than how regular privately owned commercial airports work)
It’s all exactly the same, except as a rich person you’re far more likely to be picked for a customs check.
> 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.
due process bad!
And about passport checks I repeated the NPR as I have no first hand experience with private jet :)
For some reason our society needs to believe in "justice is blind" lmao.
Link?
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.
I'd (like to think I'd) bow discreetly, slip the envelope into my pocket, and excuse myself. Then I'd be on the phone to security before my office door swung closed.
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.
Yes, those are concerns.
And if you need a background check for a HAM radio license, it makes sense to have a background check for pilot licenses.
What will that achieve? How many terror attacks have there been on board private planes?
> And if you need a background check for a HAM radio license, it makes sense to have a background check for pilot licenses.
An useful background check would be something more akin to a security clearance, not like a HAM radio license.
Why do we still check those? Whatever checking private planes would achieve.
Maybe that's nothing, but annoying safety/security measures need to be all or nothing. No exemptions.
2. You didn't understand re: HAM radio, you have to report your felonies for a HAM radio license and that gets reviewed, in USA anyway: http://www.arrl.org/fcc-qualification-question
Regular passenger flights often contain hundreds of random people, private jets don’t. It’s downright idiotic to equate these.
> 2. You didn't understand re: HAM radio, you have to report your felonies for a HAM radio license and that gets reviewed, in USA anyway
I did understand.
I'm just saying, when you run into some people who claim to be classical musicians but who don't look or behave anything like any musicians you've ever heard of, who are travelling on an unusual schedule with unusual luggage, who ask a lot of oddly-specific questions about security, who seem overly concerned with whether or not a large crate will get X-rayed, and who offer you large quantities of cash for unclear reasons, it's worth at least a quick ping to airport security.
“airport security” generally doesn’t show up for free, it’s a paid service.
It's confusing, I hear people say he "escaped" and I hear people say he should be prosecuted for escaping. Weird.
Basically Enron except he stole the money [1]. (Also, less of it.)
[1] https://en.wikipedia.org/wiki/Carlos_Ghosn#Initial_arrest
Yup! (I mean, it went to subsidiaries for pay his family and his own entities. Or was laundered to pay for a party at Versailles. Fairly standard stuff.)
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.
Many people who become extraordinarily successful owe their success to their integrity and competence, not to ruthlessness or sociopathy.
This is especially true in advanced economies which became advanced largely because of somewhat meritocatic hierarchies that do a decent job of incentivizing and rewarding socially beneficial behavior.