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Nissan's Ghosn crisis

Ghosn aide Kelly released on bail over 1 month after arrest

'I have not been involved in alleged false', he says in a statement

Greg Kelly, the former deputy of ousted Nissan chairman Carlos Ghosn, is seen in the car, as he leaves after being released from a detention centre in Tokyo, Dec. 25.   © Reuters

TOKYO (Kyodo) -- Greg Kelly, a close aide of Nissan Motor Co.'s ousted Chairman Carlos Ghosn, was released on bail Tuesday night from the Tokyo Detention House where he had been held for over a month.

Kelly, indicted for conspiring to understate Ghosn's remuneration for years in securities reports, issued a statement through his lawyer and denied an allegation against him.

"I have not been involved in alleged false (financial reporting)," he said.

Looking tired after his 37 days of confinement, the former Nissan representative director left the Tokyo Detention House around 10:45 p.m.

Wearing a white jacket, he walked slowly, hands behind his back. His gaze was cast downward, and he climbed into a waiting taxi without acknowledging the multiple camera flashes and questions thrown at him by the media.

The Tokyo District Court earlier rejected prosecutors' appeal against its decision to set a 70 million yen ($630,000) bail.

Under conditions of his release, he cannot travel outside of Japan and his movement is limited to certain areas within the country.

His wife Donna Kelly has issued a video statement in which she said her husband's medical symptoms have been "deteriorating" under detention conditions.

Kelly suffers from spinal stenosis with symptoms including numbness, tingling and shooting pains in the extremities, and he was to undergo surgery Dec. 7 in Nashville, Tennessee, before his arrest, she said.

"We were told by his doctor that if he did not have the surgery within two months, these symptoms could become permanent," she said.

Kelly himself has emphasized the direness of his medical condition saying in his statement "After the bail, I would like to see the doctor immediately and have appropriate treatment or operation originally scheduled in early December."

Kelly, a former representative director of the Japanese automaker, was indicted this month along with Ghosn for allegedly understating Ghosn's remuneration in securities reports over the five-year period through fiscal 2014. They have denied the allegation.

Kelly, a U.S. citizen, was arrested Nov. 19 along with Ghosn for allegedly conspiring with the former chairman, who remains in detention. Prosecutors believe Kelly instructed an executive in charge of legal affairs and other officials to make false statements about Ghosn's remuneration in securities reports.

Ghosn allegedly only reported roughly 5 billion yen of his 10 billion yen compensation during the five years through March 2015.

Ghosn and Kelly were served with fresh arrest warrants on Dec. 10 for the alleged understatement of an additional 4.27 billion yen in compensation over the three years through March this year.

They were indicted Dec. 10 on charges of violating the Financial Instruments and Exchange Act. Both men have denied the allegations.

With the second arrest warrants, the court allowed the detention of Kelly and Ghosn to be extended until Dec. 20. However, the court rejected prosecutors' request for another 10-day extension last Thursday, paving the way for Kelly to be released on bail.

Although the court ruling also applied to Ghosn, his release was not imminent as prosecutors served him Friday with a third warrant for aggravated breach of trust.

Prosecutors allege Ghosn made Nissan shoulder his personal investment losses worth 1.85 billion yen from a derivatives contract with a Japanese bank. On Sunday, a Tokyo court approved Ghosn's detention until Jan. 1.

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