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Tesco fraud trial abandoned after defendant's heart attack | Tesco fraud trial abandoned after defendant's heart attack |
(35 minutes later) | |
The trial of three former Tesco executives charged with fraud and false accounting has been abandoned. | The trial of three former Tesco executives charged with fraud and false accounting has been abandoned. |
Chris Bush, Tesco's former UK boss, John Scouler, Tesco's former commercial food director and Carl Rogberg, its former UK finance boss have been on trial for more than four months. | Chris Bush, Tesco's former UK boss, John Scouler, Tesco's former commercial food director and Carl Rogberg, its former UK finance boss have been on trial for more than four months. |
It emerged on Tuesday that Mr Rogberg had a heart attack last Thursday. | It emerged on Tuesday that Mr Rogberg had a heart attack last Thursday. |
The Serious Fraud Office will decide in early March whether to pursue a re-trial. The men deny the charges. | The Serious Fraud Office will decide in early March whether to pursue a re-trial. The men deny the charges. |
Mr Rogberg, aged 51, remains in hospital awaiting surgery. His solicitor read out a statement on the steps of Southwark Crown Court: "Mr Rogberg is devastated at the news that the trial has been aborted. | Mr Rogberg, aged 51, remains in hospital awaiting surgery. His solicitor read out a statement on the steps of Southwark Crown Court: "Mr Rogberg is devastated at the news that the trial has been aborted. |
"He waived his right to attend these last stages after he had given evidence himself for many days, and had participated in the last four and half months of the trial. | "He waived his right to attend these last stages after he had given evidence himself for many days, and had participated in the last four and half months of the trial. |
"He was always very anxious that this jury should be allowed to reach its verdict and is desperately sorry that they were prevented from doing so." | "He was always very anxious that this jury should be allowed to reach its verdict and is desperately sorry that they were prevented from doing so." |
Frustration | Frustration |
Discharging the jury, Judge Deborah Taylor said: "It wouldn't be right or proper to continue with this trial." | Discharging the jury, Judge Deborah Taylor said: "It wouldn't be right or proper to continue with this trial." |
She acknowledged the impact on the jury: "It has been a long period and I know it must be quite frustrating for you not to come to a conclusion at the end of all your hard work during the course of this trial." | She acknowledged the impact on the jury: "It has been a long period and I know it must be quite frustrating for you not to come to a conclusion at the end of all your hard work during the course of this trial." |
Nicholas Purnell, QC, representing Mr Rogberg, had asked for the trial to continue while his client was having treatment. | Nicholas Purnell, QC, representing Mr Rogberg, had asked for the trial to continue while his client was having treatment. |
He told the court: "I think he would be utterly devastated to discover that as a consequence of what he has been through, there's a possibility that the trial has to start again." | He told the court: "I think he would be utterly devastated to discover that as a consequence of what he has been through, there's a possibility that the trial has to start again." |
Inflated profits | Inflated profits |
The three defendants had been accused of fraud and false accounting in connection with the retailer's £250m accounting scandal. | The three defendants had been accused of fraud and false accounting in connection with the retailer's £250m accounting scandal. |
The criminal charges stemmed from a statement the supermarket group made three-and-a-half years ago. | The criminal charges stemmed from a statement the supermarket group made three-and-a-half years ago. |
On 29 August 2014, Tesco said it expected profits for the first half of its financial year to be "in the region of £1.1bn". | On 29 August 2014, Tesco said it expected profits for the first half of its financial year to be "in the region of £1.1bn". |
Some three weeks later, under the stewardship of new chief executive Dave Lewis, Tesco admitted that the figure had been overstated. | Some three weeks later, under the stewardship of new chief executive Dave Lewis, Tesco admitted that the figure had been overstated. |
In fact, it said that profits had been inflated by an estimated £250m. | In fact, it said that profits had been inflated by an estimated £250m. |
Further investigations discovered that irregularities, which centred around its UK food business, were also found in Tesco's accounts for 2013-14. | Further investigations discovered that irregularities, which centred around its UK food business, were also found in Tesco's accounts for 2013-14. |
Delays and holidays | Delays and holidays |
The figures had been flattered by early recognition of payments from suppliers who sell their goods in the supermarket's stores as well as delays in charging costs. | The figures had been flattered by early recognition of payments from suppliers who sell their goods in the supermarket's stores as well as delays in charging costs. |
Eventually, it was determined that Tesco had overstated its profits by £284m. | Eventually, it was determined that Tesco had overstated its profits by £284m. |
The three men always denied the charges and argued in court that the SFO's investigation was flawed from the outset. | The three men always denied the charges and argued in court that the SFO's investigation was flawed from the outset. |
Initially, the hope was that the case would finish before Christmas, but the trial has been beset by delays. | Initially, the hope was that the case would finish before Christmas, but the trial has been beset by delays. |
The judge became ill during her summing up and there was a further pause of two weeks when a juror went on holiday. | The judge became ill during her summing up and there was a further pause of two weeks when a juror went on holiday. |
One member of the jury had already been discharged by then because of an operation. | One member of the jury had already been discharged by then because of an operation. |
Analysis: Emma Simpson, at Southwark Crown Court | Analysis: Emma Simpson, at Southwark Crown Court |
It's an outcome no one could've predicted - or would have wanted. It had already taken up more than a quarter of a year and had been beset by delays. There was the hope it would end before Christmas, then the judge became ill and it's been stop, start, stop ever since. | It's an outcome no one could've predicted - or would have wanted. It had already taken up more than a quarter of a year and had been beset by delays. There was the hope it would end before Christmas, then the judge became ill and it's been stop, start, stop ever since. |
Having already discharged one juror for health reasons, there was a further delay when a juror went on holiday. | |
And then there's the cost. This has been a complex, multi-million pound, trial. The SFO, which brought the case, will now decide whether or not a retrial is appropriate. | |
Meanwhile the defendants, who denied the charges, have almost another month to wait to find out what happens next. | Meanwhile the defendants, who denied the charges, have almost another month to wait to find out what happens next. |