The SFO entered into a Deferred Prosecution Agreement (DPA) with Tesco Stores Limited on 10 April 2017.
Through the DPA Tesco Stores Limited accepted responsibility for false accounting practices. Between February and September 2014, instead of working to safeguard the financial interests of the company and its shareholders, a culture existed at Tesco that encouraged illegal practices to meet accounting targets, including improperly recognised income in the UK accounts, by ‘pulling forward’ income from subsequent reporting periods.
Carl Rogberg, John Scouler and Christopher Bush, former Tesco employees who held senior management roles in the Tesco UK business, were charged over allegations of fraud and false accounting on 9 September 2016.
John Scouler and Christopher Bush were acquitted of all charges after Sir John Royce ruled that they had no case to answer at trial. This decision was upheld in the Court of Appeal on 5 December 2018. A third defendant, Carl Rogberg, was severed from the trial. The SFO offered no evidence at a hearing on 23 January 2019 and Mr Rogberg was acquitted of all charges.
Terms of DPA
Under the DPA, Tesco agreed to pay a £129m fine and £3m investigation costs. The company will also undertake and implement an ongoing compliance programme during the three year term of the DPA.
Full information is available in the Statement of Facts, agreed by the SFO and Tesco Stores Ltd. The Agreement itself and Sir Brian Leveson’s judgment are published below.
Information about how Deferred Prosecution Agreements work in the UK is here.
Page published on 4 Nov 2014 | Page modified on 23 Jan 2019