Andrew Regan was found not guilty today at Snaresbrook Crown Court of stealing £2.4 million from a company he controlled, money used to provide bribes to two CWS executives to agree a food supply contract.
Andrew Regan was the chief executive and majority shareholder of Hobson Plc, a company that in 1994 bought the food manufacturing operation, F. E. Barber Ltd from the Co-operative Wholesale Society ("CWS") for in excess of £100 million. It comprised a number of factories that provided the CWS with its range of own-brand products sold throughout the Co-op chain of around 800 retail stores nation-wide.
The SFO alleged that in January 1995, Andrew Regan transferred the sum of £2.4 million from FE Barber Ltd, in order to bribe two senior CWS executives. The alleged purpose was to ensure that his company, Hobson Plc, was awarded a 2½-year extension to a 3-year exclusive food supply contract signed with CWS in 1994 when F.B. Barber was acquired.
Mr Regan denied that his authorisation to transfer the money to the intermediary (Ronald Zimet, and his company Trellis International Ltd) was theft. He said that he had provided the money to Ronald Zimet as a brokerage fee for his successful attempt to resolve the deadlock between the CWS and Hobson Plc in negotiations about the food supply extension contract.
Proceedings
During the early months of 1997 there was much publicity about Andrew Regan's attempt to buy the CWS for a reported £1.2 billion. Arising out of this bid, an internal investigation was undertaken by the CWS into the activities of Allan Green and David Chambers and their dealings with Regan. Both executives were dismissed by CWS. This was followed, in April 1997, by the opening of an investigation by the SFO (conducted with support from the Metropolitan Police and the Greater Manchester Police) into the food supply contract of 1994 and the 1995 extension.
On 21 September 1999 at Bow Street Magistrates Court: Allan Green and David Chambers (the two CWS executives) were charged with corruptly accepting £1 million each; Paul Thomas (a solicitor advising Hobson Plc) was charged with aiding and abetting corruption. All three pleaded not guilty.
On 8 October 1999 a warrant was issued for the arrest of Andrew Regan, who was residing in Monaco, on a charge of theft of £2.4 million from Hobson Plc subsidiary FE Barber Ltd.
On 25 May 2000 Regan, facing extradition proceedings, agreed to return to the UK, was arrested and charged at Bow Street Magistrates Court. He pleaded not guilty.
On 27 November 2001 the trial of all four defendants opened at Snaresbrook Crown Court.
On 12 April 2002, Green and Chambers were found guilty. Thomas was acquitted. The jury failed to reach a verdict on Andrew Regan and HHJ David Radford ordered that he be re-tried.
On 16 April 2002 Green and Chambers were each sentenced to 3½ years' imprisonment and each ordered to pay £50,000 costs to the SFO. The SFO recovered from Green and Chambers the bribe monies and accumulated interest.
On 13 January 2003 the retrial of Andrew Regan opened but was halted on 21 January 2003 for legal reasons. The judge ordered that a fresh re-trial take place with a new jury.
On 14 July 2003 the retrial of Regan commenced. The defendant gave no evidence.
On 6 August 2003 the jury returned a verdict of not guilty.
The provisional costs to the Serious Fraud Office of the investigation and three trials are estimated at £1.5 million.
A spokesperson for the SFO said, As result of this investigation two defendants were convicted and two acquitted. Our job is to present the evidence to the Courts and this we did. It was then a matter for the jury to decide on that evidence whether they could be sure of the defendants guilt. Andrew Regan's acquittal is not a disaster for the SFO. The office should be judged on its overall record and not on one case.'
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