This page contains a Flash digital edition of a book.
In Focus Risk


have more to do with Tesco: another DPA- related saga that the SFO seems unable to resolve to its own satisfaction.


Tesco Like Rolls-Royce, Tesco entered into a DPA with the SFO early in 2017; paying almost £130m to settle allegations that it overstated its profits by hundreds of millions of pounds three years earlier. As with Rolls-Royce, certain former


employees were investigated – and three were charged. But last month, the case against two of them collapsed when Court of Appeal judges cleared them of fraud and false accounting due to lack of evidence. Judge Sir John Royce said the case was


“so weak’’ it should not be before a jury. This was a major embarrassment for the


SFO. Whether this has influenced the SFO’s decision to abandon investigations against Rolls-Royce individuals is something that only its senior figures will know.


New broom This latest decision could be the SFO’s new director Lisa Osofsky acting as a new broom; sticking to her pledge to speed up decision making and discarding cases that she sees little or no value in pursuing. Or it could be that evidence has finally


been found that absolves the individuals concerned of any blame. But whatever the reason, this decision should not have taken years. Once Rolls-Royce was under investigation,


it cooperated fully with the SFO. If the evidence was there to agree a DPA, it is hard to see how it takes two more years to decide whether or not individuals should be prosecuted.


An important time News of the SFO's decision to drop its pursuit of several individuals in the Rolls- Royce investigation comes at an important time for the agency. This week sees the trial begin of four former Barclays executives, which stems


February 2019 www.CCRMagazine.com 39


from an SFO investigation into how the bank raised capital during the financial crisis a decade ago. Many other major companies, including


G4S, GlaxoSmithKline, and, most recently, Patisserie Holdings, are also the subject of high-profile SFO investigations.


Last year, the SFO’s case against Barclays


bank – as opposed to the current trial of its four executives – collapsed. In 2016, the trial of brokers accused of


helping convicted trader Tom Hayes rig the Libor rate also collapsed.


The SFO may yet have some success with its Rolls-Royce investigation. But the fact that it has now been scaled down – and that this comes after a number of recent setbacks for the agency – means that the SFO is now under pressure to deliver


Conclusion The SFO may yet have some success with its Rolls-Royce investigation. But the fact that it has now been scaled down – and that this comes after a number of recent setbacks for the agency – means that the SFO is now under pressure to deliver. The speed with which the SFO


investigates matters and the success of such investigations are now matters that both the business and legal worlds are taking a very close interest in. As a new broom, Lisa Osofsky may have


a bigger clear-out on her hands than she bargained for. CCR


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52