PARIS (Kyodo) -- French judicial authorities have launched an investigation into allegations that former Renault SA Chairman and CEO Carlos Ghosn embezzled company funds for his wedding reception at the Palace of Versailles in 2016, French media reported Monday.
Amid a spate of alleged financial misconducts by Ghosn at Nissan Motor Co., where he was chairman, the latest move is the first criminal inquiry involving Renault.
Investigators are probing whether Ghosn used the palace for free following Renault's sponsorship of renovations at Versailles worth 2.3 million euros ($2.6 million), the reports said.
In February, Renault reported to French investigators that Ghosn allegedly received 50,000 euros in personal benefit, equivalent to the cost of using the palace, under the sponsorship deal. His lawyer then said there was a misunderstanding over the matter, and that Ghosn was prepared to repay the money.
Ghosn was released on bail in Japan last Wednesday at the third time of asking, more than three months after he was arrested. He has denied the allegations against him.