The trial of three former Tesco executives accused of fraud and false accounting following the accounting scandal which rocked the retailer in 2014, is due to begin in London today.
Ex-managing director Chris Bush, previous UK food commercial director John Scouler and former UK finance director Carl Rogberg are being prosecuted at Southwark Crown Court after a Serious Fraud Office investigation into Tesco’s £326m overstatement of its profits dating back to 2014.
Tesco defendants & charges
Carl Rogberg (former UK finance director)
• One count of Fraud by Abuse of Position, contrary to section 1 and 4 of the Fraud Act 2006.
• One count of False Accounting contrary to s17 Theft Act 1968.
Chris Bush (former UK MD)
• One count of Fraud by Abuse of Position, contrary to section 1 and 4 of the Fraud Act 2006.
• One count of False Accounting contrary to s17 Theft Act 1968.
John Scouler (former UK commercial director)
• One count of Fraud by Abuse of Position, contrary to section 1 and 4 of the Fraud Act 2006.
• One count of False Accounting contrary to s17 Theft Act 1968.
All three men have pleaded not guilty to charges, having been accused of abusing their position in Tesco to inflate the supermarket giant’s books.
The scandal happened just three weeks after Dave Lewis was parachuted in to take over as CEO, having replaced former boss Philip Clarke.
In September 2014, Tesco issued a statement to the London Stock Exchange saying it had identified a £250m overstatement of its expected profit for the half-year, mainly due to booking commercial deals with suppliers too early. The figure was later increased to £263m and then again to £326m in April 2015.
All three men stepped aside from the company in the wake of the SFO investigation. Scouler went on to become commercial director of TalkTalk and is currently on sabbatical until the case, presided over by Her Honour Judge Deborah Taylor, concludes.
Bush became managing director of Tesco in December 2012, having previously served as chief operating officer and head of Tesco’s Lotus business in Thailand.
He will be defended by Adrian Darbishire QC, whose recent work includes successfully representing an entrepreneur charged with money laundering and representing a Mizuho banker charged with insider dealing.
He was also a central figure throughout the ‘cash for honours’ investigation.
Scouler took over as UK commercial director in charge of fresh food & grocery at Tesco in October 2012, having worked at Kraft Foods before joining Tesco’s buying operation.
Scouler’s defence lawyer, Ian Winter QC, has a long CV including defending the newspaper tycoon Richard Desmond in a libel battle. He also previously defended the serial killer Dr Harold Shipman.
Rogberg, whose previous roles at the retailer include finance director for Tesco Lotus, became FD in 2013.
He also previously served as FD at Kraft Foods.
Rogberg is managing director of Church Farm Industries, a consulting business serving retail and fmcg companies.
Rogberg is defended by Nicholas Purnell QC, whose recent cases include acting for Standard Bank in securing the first UK Deferred Prosecution Agreement in relation to suspected bribery.
Counsel for the prosecution in the case is Sacha Wass QC, whose most notable recent case was the prosecution of children’s entertainer Rolf Harris.
She has also been both prosecutor and defender in numerous cases of alleged complex fraud and was responsible for prosecuting rogue trader Kweku Adoboli. Described by The Times as “clever and ice cool” she also famously prosecuted serial killer Rose West.
The three former Tesco executives first appeared at Westminster Magistrates’ Court on 22 September last year following the charges brought by the SFO on 9 September 2016.
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