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On 4 November 2013, the SFO announced a criminal investigation into electronic monitoring contracts at G4S Care and Justice Services (UK) Ltd (G4S).

Deferred Prosecution Agreement

On 10 July 2020, following the announcement from G4S Plc, the Serious Fraud Office confirmed that it had received approval in principle to enter into a Deferred Prosecution Agreement (DPA) with G4S Care and Justice Services (UK) Ltd (G4S C&J), a wholly-owned subsidiary of G4S Plc. On Friday 17 July, Mr Justice William Davis granted final approval for the DPA.

In entering the DPA, G4S C&J has accepted responsibility for three offences of fraud against the MoJ arising from the scheme to deceive the MoJ as to the true extent of G4S C&J’s profits between 2011 and 2012 from its contracts for the provision of electronic monitoring services.  The scheme was designed to prevent the MoJ from attempting to decrease G4S C&J’s revenues under those contracts. 

The DPA requires G4S C&J to pay a financial penalty of £38.5m and the SFO’s full costs of £5.9m. Compensation to the MoJ has already been paid by G4S C&J as part of a £121.3m civil settlement in 2014.

Additionally, the terms of the DPA bind G4S C&J to wide-ranging compliance obligations and improvements, including periodic review, assessment, and reporting of G4S plc’s and G4S C&J’s internal controls, policies and procedures by a third-party reviewer. These compliance obligations are a critical component of the DPA, offering substantial oversight and assurance regarding the future corporate conduct of a major UK government supplier. More information can be found here.

The DPA only relates to the potential criminal liability of G4S Care & Justice Services (U.K.) Limited and does not address whether liability of any sort attaches to any employee, agent, former employee or former agent of G4S Care & Justice Services (U.K) Limited.

Conclusion of Deferred Prosecution Agreement

Full information is available in the Statement of Facts, agreed by the SFO and G4S Care and Justice Services (UK) Limited. The Agreements, Statement of Facts, the judgment of Mr Justice William Davis and Details of Compliance are published below.

17th July 2020

Deferred Prosecution Agreement – G4S Care and Justice Services

Statement of Facts

Judgment of Mr Justice William Davis

25th July 2023

Details of Compliance – Discontinuance of proceedings on expiry of deferred prosecution agreement

Information about how Deferred Prosecution Agreements work in the UK is here.

Outcome of criminal case

On 8 September 2020, the Serious Fraud Office charged three former executives of G4S Care and Justice Services (UK) Ltd (G4S C&J) with multiple offences in relation to a multi-year scheme to defraud the Ministry of Justice (MoJ).

On 10 March 2023, the SFO informed the court that it would not be proceeding with the trial of these executives. In line with the Code for Crown Prosecutors, it was determined that it was no longer in the public interest to continue this prosecution.

Note on individuals

The DPA only relates to the potential criminal liability of G4S Care & Justice Services (UK) Ltd and does not address whether liability of any sort attaches to any employee, agent, former employee or former agent of G4S Care & Justices Services (UK) Ltd.

As Mr Justice William Davis made clear at paragraph 19 of the DPA Judgment, “Insofar as the Statement of Facts refers to individuals, none of those individuals played any part in the process whereby the DPA was concluded. Therefore, this judgment is not to be taken as indicating liability of any kind on the part of any particular individual.”

Following the DPA being reached with the company, G4S C&J Director 1, G4S C&J Director 2 and G4S C&J Manager 1 were charged with offences arising from the SFO investigation. They were acquitted of all charges.

Page published on 12 Nov 2014 | Page modified on 25 Jul 2023