Carlos Ghosn and Nissan have been indicted in Japan

Tokyo prosecutors said they indicted Ghosn and Nissan for under-reporting his income over a five-year period.

A spokesman for Nissan wasn’t immediately available for comment on the announcement.

Ghosn’s sudden downfall began when he was arrested in Tokyo last month. He has since been ousted as chairman of Nissan (NSANY) and Mitsubishi Motors (MMTOF) and temporarily replaced as head of France’s Renault (RNSDF).

Former Nissan director Greg Kelly, who was arrested in Tokyo at the same time as Ghosn, was also indicted Monday, prosecutors said.

The two men are alleged to have collaborated to under-report Ghosn’s income by about 5 billion yen ($44 million) over a five-year period ending in March 2015, according to prosecutors. The maximum punishment in Japan for filing a false financial statement is up to 10 years in prison and a fine of up to 10 million yen ($89,000).

Ghosn and Kelly have not yet responded publicly to the allegations. Japanese public broadcaster NHK reported Monday that Ghosn is denying the charge against him.

The prosecutors’ decision to go ahead and indict them is an ominous development for the two men. More than 99% of people charged with a crime in Japan are eventually convicted, according to experts.

This is a developing story

Yoko Wakatsuki contributed to this report.

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