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Former Nissan chairman Carlos Ghosn arrested again in Tokyo

Tokyo prosecutors say the latest arrest of former Nissan chairman Carlos Ghosn was based on suspicion he diverted $5 million US from funds that were being relayed from a Nissan subsidiary to an overseas dealership.

Prosecutors arrested ex-auto boss on suspicion he diverted funds

Former Nissan Chairman Carlos Ghosn, centre, leaves his lawyer's office in Tokyo, on Wednesday. He's been arrested again and is reportedly in a Tokyo detention centre. (Sadayuki Goto/Kyodo News/Associated Press)

Tokyo prosecutors say the latest arrest of former Nissan chairman Carlos Ghosn was based on suspicion he diverted $5 million US from funds that were being relayed from a Nissan subsidiary to an overseas dealership.

TV footage Thursday morning showed officials entering Ghosn's apartment, and a car later going to the prosecutors' office, barely a month after Ghosn was released on bail from the earlier arrests related to alleged financial misconduct while he led the Japanese automaker.

In a statement Ghosn strongly declared his innocence.

"My arrest this morning is outrageous and arbitrary. It is part of another attempt by some individuals at Nissan to silence me by misleading the prosecutors. Why arrest me except to try to break me? I will not be broken. I am innocent of the groundless charges and accusations against me."

He was first arrested in November on charges of under-reporting his compensation.

The prosecutors said the diverted money is suspected of going to a company Ghosn virtually ran. The statement issued Thursday did not mention Oman. But an investigation by Nissan Motor Co.'s French alliance partner Renault has centered on payments to a dealership in Oman in which some of the money is suspected of having been channeled for Ghosn's personal use.

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