The U.K. Serious Fraud Office announced Monday it has charged two individuals with fraud and false accounting concerning Serco’s electronic monitoring contract with the Ministry of Justice.
Nicholas Woods, former finance director of Serco Home Affairs, and Simon Marshall, former operations director of field services within Serco, were charged with fraud by false representation and false accounting in relation to representations made to the Ministry of Justice (MoJ) between 2011 and 2013. Woods was additionally charged with false accounting in relation to the 2011 statutory accounts of Serco Geografix, the SFO announced.
The charges follow a deferred prosecution agreement that Serco Geografix, a wholly owned subsidiary of Serco Group, reached with the SFO, which was approved by Justice William Davis on July 4. Under the terms of the DPA, Serco Geografix was ordered to pay a financial penalty of £19.2 million (U.S. $24.2 million) and the full amount of the SFO’s investigative costs (£3.7 million, or U.S. $4.7 million). Serco had already paid compensation to the MoJ as part of a £70 million (U.S. $88 million) civil settlement in 2013.
The SFO said it is unable to comment further at this time as the investigation remains active.