Tokyo court rejects request for ousted Nissan chief's detention to be ended

The Tokyo District Court on Wednesday rejected a request filed by former Nissan Motor Co. Chairman Carlos Ghosn's defense counsel to end his detention following his arrest in November on allegations of financial misconduct.

The court's decision came a day after Ghosn appeared for the first time since his arrest at the court where he robustly maintained his innocence regarding all allegations of financial improprieties facing him.

Following the hearing held Tuesday, during which the global automotive heavyweight was allocated 10 minutes to appeal his innocence to the court and hear the reasons for his lengthy detention -- further extended following fresh suspicions he committed aggravated breach of trust, Ghosn's lawyers filed a request with the court to end his detention.

Presiding Judge Yuichi Tada said during Ghosn's hearing that his ongoing detention was due to concerns he might try to destroy key evidence and that he was also a flight risk.

The 64-year-old's legal team said Wednesday they will seek to file a quasi-appeal against the Tokyo District Court's decision not to release Ghosn.

The ousted chairman has rigorously maintained he has in no way violated Japan's Financial Instruments and Exchange Act following allegations he massively under-reported his pay package during the five years through March 2015.

He also claimed that allegations he transferred personal investment losses to Nissan during the 2008 global financial crisis, which led to his detention in Tokyo being extended, were baseless.

Local media, citing sources close to the matter, reported Wednesday that the ex-Nissan chief intended to grant a loan through Nissan to the tune of 3 billion yen (27 million U.S. dollars) to a businessman.

The loan may have been extended as a bid to use as collateral for Ghosn's private investment contract, the sources said. Prosecutors here believe Ghosn caused financial damage to his company by paying the businessman 14.7 million U.S. dollars between 2009 and 2012, through Nissan, so as to secure credit from his Middle Eastern acquaintance.

Ghosn's detention is scheduled to end on Jan. 11 and prosecutors by this time must make an ultimate decision as to whether or not to indict him over the charges facing him.

Motonari Otsuru, Ghosn's chief lawyer, told a press conference Tuesday after the hearing that Ghosn could theoretically be detained for a minimum of another six months, citing the complexities of the case.

Bail is unlikely to be granted as Ghosn has unequivocally denied all allegations against him, Otsuru also said.