Tim Kelly

TOKYO, Reuters – Japanese prosecutors requested a Tokyo court to sentence former Nissan Motor Executive Greg Kelly for two years to serve his time for helping Carlos Ghosn (OTC) hide earnings.

Kelly was sentenced to jail by the Japanese automaker’s prosecution during closing arguments of a one-year-old trial.

Next year is likely to see a ruling on the case. Kelly may join two Americans already serving sentence in Japan, who were sent in July after they admitted that Ghosn had helped in smuggling out of Japan using a private aircraft hidden in luggage. Ghosn remains a fugitive in Lebanon.

Japan’s conviction rate hovers around 99%

Kelly denied that he assisted Ghosn to hide 9.3 Billion yen in earnings over 8 years via deferred payments. He said his sole goal was to keep a chief executive from being lured by an automaker rival.

Japan implemented new financial regulations in 2010 that required executives of companies earning over 1 billion yen per year to report their compensation.

Ghosn, who also denies any wrongdoing, faces separate breach of trust charges that allege he enriched himself at Nissan’s expense through $5 million in payments to a Middle East car dealership, and by temporarily transferring personal financial losses to his employer’s books.

Ex-Nissan executives claim they were victims of an insider conspiracy by their former colleagues, who feared that Ghosn would force a merger between Nissan SA and Renault SA (OTC):, its largest shareholder.

Kelly was seen in a suit as he listened to months worth of testimony, which included former colleagues Hari Nada (ex-vice president in charge legal affairs) and Toshiaki Ohnuma (official responsible for Ghosn’s compensation details). They cooperated with the prosecutors but were not arrested.

($1 = 110.7420 yen)