Former Tesco directors sued for fraud

Three former Tesco directors have been sued for fraud after the supermarket chain’s accounting scandal. If found guilty, they could spend up to ten years in prison.

Forged the accounting

Late 2014, it became clear that Tesco’s financial results contained substantial errors, which forced the company to adjust its profit forecast by 250 million pounds (320 million euro). In the scandal’s aftermath, several directors were suspended and three of them now face charges by the Serious Fraud Office.

Former financial director Carl Rogberg, former managing director Christopher Bush and former commercial director for food John Scoulter all face false accounting charges and fraud by abuse.

Former CEO not in trouble

The three will have to appear in court on 22 September, but the Serious Fraud Office said it may indict other people later as the investigation is still ongoing. Former CEO Philip Clarke however will not be facing charges.

The Tesco scandal was revealed late 2014, when newly-appointed CEO Dave Lewis was told about the accounting issues from a company employee. Ever since, Tesco rigorously restructured the company to get it back on track. To that end, it has mostly sold off foreign assets.