Investigation into individuals
The SFO is conducting a criminal investigation into G4S electronic monitoring contracts.
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).
Richard Morris, former Managing Director of G4S C&J, Mark Preston, former Commercial Director of G4S C&J’s electronic monitoring business, and James Jardine, former Finance Manager and Acting Commercial Director of G4S C&J’s electronic monitoring business, were each been charged with seven offences of fraud in connection to false representations made to the MoJ between 2009 and 2012.
The individuals appeared for their first hearing at Westminster Magistrates’ Court today, Tuesday 8th September 2020. They are due to appear at Southwark Crown Court on 6th October 2020.
These are active proceedings and the Strict Liability Rule in the Contempt of Court Act applies. Reporting restrictions are also in place with respect to aspects of these proceedings. The relevant orders can be found here.
Deferred Prosecution Agreement
On 10 July, 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 in the press 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.
Tudalen wedi ei chyhoeddi ar 12 Tach 2014 | Tudalen wedi ei haddasu ar 15 Medi 2020