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Three charged over Tesco accounts fraud | Three charged over Tesco accounts fraud |
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Three Tesco former executives have been charged as part of an ongoing Serious Fraud Office (SFO) investigation into 2014 accounting irregularities at the supermarket giant. | Three Tesco former executives have been charged as part of an ongoing Serious Fraud Office (SFO) investigation into 2014 accounting irregularities at the supermarket giant. |
Carl Rogberg, Christopher Bush and John Scouler have been charged with fraud by abuse of position and false accounting, the SFO said. | Carl Rogberg, Christopher Bush and John Scouler have been charged with fraud by abuse of position and false accounting, the SFO said. |
The three are due to appear in court on 22 September. | The three are due to appear in court on 22 September. |
Tesco said there had been "an extensive programme of change" since 2014. | Tesco said there had been "an extensive programme of change" since 2014. |
Mr Bush was managing director of Tesco UK, Mr Rogberg was finance director UK and Mr Scouler was UK food commercial director. | Mr Bush was managing director of Tesco UK, Mr Rogberg was finance director UK and Mr Scouler was UK food commercial director. |
The SFO started a criminal investigation in October 2014, a week after Tesco announced that its profits had been overstated by £263m. | The SFO started a criminal investigation in October 2014, a week after Tesco announced that its profits had been overstated by £263m. |
Later, that figure was revised upwards to £326m. | |
Action | |
Auditors found that the inflated profit figure was the result of Tesco booking payments from suppliers before the company had been due the money. | |
The affair damaged the company's share price and led to court action by US shareholders. | |
In November last year, Tesco paid $12m (£9m) to settle a lawsuit alleging that accounting irregularities had inflated the share price of the company. | |
The company was also being investigated by the UK's Financial Reporting Council (FRC), which polices accountants. It though has closed its investigation into Laurie McIlwee, the former chief financial officer at Tesco. | |
The FRC, however, is still investigating Tesco's accountants PwC as to how the firm prepared, approved and audited its accounts in the run up to the scandal. | |
'Historic issues' | |
Tesco said in a statement: "We note the decision of the SFO to bring a prosecution against former colleagues in relation to historic issues and acknowledge the investigation into the company is ongoing. | |
"Tesco continues to cooperate with the SFO's investigation. The last two years have seen an extensive programme of change at Tesco, but given this is an ongoing legal matter, we are unable to provide any further comment at this time." | |
Mr Scouler is now commercial director at the telecoms company TalkTalk. In a statement that company said: | |
"We are aware of the SFO's announcement, but as this is an ongoing investigation unrelated to TalkTalk we cannot comment further." | "We are aware of the SFO's announcement, but as this is an ongoing investigation unrelated to TalkTalk we cannot comment further." |