Three individuals acquitted as Serious Fraud Office confirms DPA with Sarclad Ltd

Michael Sorby, Adrian Leek and David Justice have been acquitted of conspiracy to corrupt and conspiracy to bribe. The presiding Jury found the three men not guilty of conspiring with various agents to agree bribes in relation to 27 separate overseas contracts for their company, Sarclad Ltd.

After the removal of reporting restrictions, the Serious Fraud Office (SFO) can now confirm that these acquittals follow the Deferred Prosecution Agreement (DPA) reached between the SFO and Sarclad Ltd in July 2016. Sarclad Ltd has accepted the charges of corruption and failure to prevent bribery in relation to the systematic use of bribes to secure contracts for the company between June 2004 and June 2012. The contracts that were the subject of the DPA had a total value of over £17 million.

As a result of the DPA, Sarclad Ltd agreed to pay financial orders of £6,553,085, comprised of a £6,201,085 disgorgement of gross profits and a £352,000 financial penalty. £1,953,085 was paid by Sarclad Ltd’s US-registered parent company as repayment of a significant proportion of the dividends that it received from the company over the indictment period.

The DPA also required Sarclad Ltd to fully co-operate with the SFO and provide a report addressing all third party intermediary transactions and the completion and effectiveness of its existing anti-bribery and corruption controls every 12 months for the duration of the DPA. The terms of the DPA have now been met and the DPA procedure is now concluded.

Sarclad Ltd identified issues in the way in which a number of contracts had been secured in August 2012, hiring a law firm to advise the business. The subsequent report by the law firm was delivered to the SFO on 31 January 2013, after which the SFO conducted its own investigation.

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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