SFO v G4S

JurisdictionEngland & Wales
JudgeMR JUSTICE WILLIAM DAVIS
Judgment Date17 July 2020
Docket NumberU20201392
CourtCrown Court
Case No: U20201392
IN THE CROWN COURT AT SOUTHWARK
IN THE MATTER OF s.45 OF THE CRIME AND COURTS ACT 2013
Royal Courts of Justice
Strand, London, WC2A 2LL
Date: 17/07/2020
Before :
MR JUSTICE WILLIAM DAVIS
- - - - - - - - - - - - - - - - - - - - -
Between :
SERIOUS FRAUD OFFICE Applicant
- and -
G4S CARE AND JUSTICE SERVICES (UK)
LIMITED
Respondent
- - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
Crispin Aylett QC, Hannah Willcocks and Raoul Colvile (instructed by the SFO) for the
Applicant
Clare Montgomery QC and Katherine Hardcastle (instructed by Freshfields Bruckhaus
Deringer LLP) for the Respondent
Hearing dates: 10th and 17th July 2020
- - - - - - - - - - - - - - - - - - - - -
Approved Judgment
.............................
Mr Justice William Davis
Approved Judgment
SFO v G4S C&J
Mr Justice William Davis:
Introduction
1. G4S Care and Justice Services (UK) Limited (“G4S C&J”) is a private limited company
registered in the United Kingdom. In 2018 the company reported net assets in excess
of £85.5 milli on, revenue of over £341 million and profit of over £17.7 million. The
principal activity of G4S C&J was described in the compan y’s 2018 annual report as
“the provision of highly specialised services to central and local governments and
government agencies and authorities including adult custody and rehabilitation,
prisoner escorting and immigration services”. It is a wholly owned subsidiary of G4S
plc, a public limited company incorporated in the United Kingdom. This parent
company employs over 550,000 people worldwide. In 2019 its reported revenue was
over £7.7 billion. In excess of £1.2 billion of that sum resulted from its operations in
the United Kingdom.
2. Between 2005 and 2013 G4S C&J provided electronic monitoring services for the
Ministry of Justice (“MoJ”). To be strictly accurate the first contracts for the provision
of such services were between Securicor Justice Services Limited, the previous name
of G4S C&J, and the Secretary of State for the Home Department i.e. the Home Office
as the government department then responsible for those services. The Ministry of
Justice took over the responsibility for the services when it was created in 2007. For
ease of reference I shall refer to G4S C&J as the relevant supplier of electronic
monitoring services throughout.
3. Electronic monitoring equipment plays a vital role in the criminal justice system. It is
used to monitor those accused of criminal offences remanded on bail with a curfew
condition, those convicted of a criminal offence made the subject of a sentence other
than immediate custody to which a curfew requirement is attached and prisoners
released early on home detention curfew and/or released on licence where the licence
involves monitoring of some kind.
4. In 2013 the MoJ contacted the Serious Fraud Office (“SFO”) in relation to the electronic
monitoring services being provided by G4S C&J. At that point the concern was
whether G4S C&J had rendered invoices and been paid for monitoring people when in
fact no monitoring had taken place. The SFO investigated that proposition. It was
determined that there was no sufficient evidence that this had occurred dishonestly. In
December of the same year the MoJ raised with G4S C&J a concern that the company
had not complied with its obligations in relation to financial reporting and notification
of unanticipated costs efficiencies. In January 2014 G4S C&J reported to the SFO that
it had discovered material which indicated that the company had failed to provide
accurate financial reports to the MoJ.
5. The SFO has investigated the report made in January 2014 by G4S C&J. The
conclusion of the investigation was that there had been fraudulent conduct in relation
to the contracts for the provision of electronic monitoring services. Further, it was
concluded that, from August 2011 and by reference to the identification principle, the
company was criminally liable for that conduct. The draft indictment charges G4S C&J
with three offences of fraud. The SFO have invited G4S C&J to enter into a deferred
prosecution agreement in relation to its alleged criminal conduct. The company is
willing to do so.



IN THE CROWN COURT AT SOUTHWARK
SITTING AT THE ROYAL COURTS OF JUSTICE
SERIOUS FRAUD OFFICE
V
G4S CARE & JUSTICE SERVICES (UK) LIMITED
___________________________________________________________________________
ORDER MADE UNDER SECTION 4(2) OF THE CONTEMPT OF COURT ACT 1981
BEFORE Mr Justice William Davis, in the Crown Court at Southwark sitting at the Royal
Courts of Justice in Court 73 on 17th July 2020.
UPON a hearing under paragraph 8 of Schedule 17 to the Crime and Courts Act 2013.
AND UPON HEARING Counsel for the Serious Fraud Office, Crispin Aylett QC, Hannah
Willcocks and Raoul Colvile, and Counsel for G4S Care & Justice Services (UK) Ltd, Clare
Montgomery QC and Katherine Hardcastle.
AND UPON it appearing that the Order below is necessary for avoiding a substantial risk of
prejudice to the administration of justice in relation to proceedings pursuant to section 4(2) of
the Contempt of Court Act 1981.
IT IS ORDERED IN THESE PROCEEDINGS:
1. The postponement of publication, until the conclusion of criminal proceedings against
individuals previously employed by G4S Care and Justice Services (U.K.) Limited or
until further order, of the preliminary and final written applications for approval of the
deferred prosecution agreement between G4S Care & Justice Services (U.K.) Limited
and the Serious Fraud Office relied upon in the hearings on 10th and 17th July 2020
under paragraphs 7 and 8 of Schedule 17 to the Crime and Courts Act 2013, pursuant
to s.4(2) of the Contempt of Court Act 1981, CPD I General Matters 6B, and Crim PR
6.1, 6.2 and 6.4.
2. The postponement, until the conclusion of criminal proceedings against individuals
previously employed by G4S Care and Justice Services (U.K.) Limited or until further
order, of any reporting tending to identify any individual referred to in the application
and proceedings for a declaration pursuant to paragraph 8 of schedule 17 of the Crime
and Courts Act 2013 held on 17th July 2020, pursuant to s.4(2) of the Contempt of Court
Act 1981, CPD I General Matters 6B, and Crim PR 6.1, 6.2 and 6.4.
3. Any reporting of the proceedings under paragraph 8 of Schedule 17 of the Crime and
Courts Act 2013 held on 17th Jul y 2020 and / or of the reasons for the decisions of the
court under paragraphs 7(1) and 8(1) of the said Schedule must include the following
statement: ‘the DPA only relates to the potential criminal liabilit y of G4S Care &
Justice Services (U.K.) Limited and does not address whether liability of any sort
attaches to any employee, agent, former employee or former agent of G4S Care &
Justice Services (U.K) Limited’.
4. No restriction is imposed on the reporting of the making of this order but its terms must
not be reported.



IN THE CROWN COURT AT SOUTHWARK U20201392
SITTING AT THE ROYAL COURTS OF JUSTICE
SERIOUS FRAUD OFFICE
V
G4S CARE & JUSTICE SERVICES (UK) LIMITED
__________________________________________________________________________
_ ORDER MADE UNDER PARAGRAPH 12 OF SCHEDULE 17 OF THE CRIME AND
COURTS ACT 2003.
BEFORE Mr Justice William Davis, in the Crown Court at Southwark, sitting at the Royal
Courts of Justice in Court 73, on 17th July 2020.
UPON a hearing under paragraph 8 of Schedule 17 to the Crime and Courts Act 2013.
AND UPON HEARING Counsel for the Serious Fraud Office, Crispin Aylett QC, Hannah
Willcocks and Raoul Colvile, and Counsel for G4S Care & Justice Services (UK) Ltd, Clare
Montgomery QC and Katherine Hardcastle.
AND UPON it appearing that the Order below is necessary for avoiding a substantial risk of
prejudice to the administration of justice in any legal proceedings pursuant to paragraph 12 of
schedule 17 of the Crime and Courts Act 2013.
IT IS ORDERED IN THESE PROCEEDINGS THAT:
1. There shall be postponed, until the conclusion of criminal proceedings against
individuals previously employed by G4S Care & Justice Services (UK) Limited or
further order, the publication by the Serious Fraud Office of:
a. the Statement of Facts prepared pursuant to Paragraph 5(1) of Schedule 17 of
the Crime and Courts Act 2013 in support of the deferred prosecution
agreement between G4S Care & Justice Services (UK) Limited and the
Serious Fraud Office.
2. No restriction is imposed on the reporting of the making or terms of this order.



DEFERREQ
PROSECUTION
AGREEMENT
G4S
Care
&Justice
Services
(UK)
Limited
(`G4S
C&J"),
by
its
undersigned
representatives,
anti
the
Director
of
the
Serious
Fraud
Office
(the
"SFO")
enter
info
this
Deferred
Prosecution
Agreement
(the
"Agreement').
This
Agreement
comes
into
force
on
the
day
when
the
Court
makes
a
declaration
pursuant
to
Schedule
17,
Sections
B(1)
and
(3)
of
the
Crime
and
Courts
Act
2013.
The
terms
and
conditions
of
this
Agreement
are
as
follows:
The
Indictment
and
Acceptance
of
Resuonsibility
7.
G4S
C&J
agrees
that
the
SF~
will
prefer
an
Indictment
numbered
U2020139?
("the
Indictment').
2.
G4S
C&~J
agrees
that
the
Statement
of
Facts
is
true
and
accurate
to
the
best
of
its
knowledge
and
belief.
3.
In
the
event
of
it
becoming
necessary
for
the
5F0
to
pursue
the
prosecution
that
is
deferred
by
this
Agreement,
G4S
C&J
agrees
that
it
will
not
contest
the
admissibility
of,
nor
contradict,
the
Statement
of
Facts
in
any
such
proceedings,
including
a
guilty
plea
and
sentencing.
The
Statement
of
Facts
will
be
treated
as
an
admission
by
G4S
C8J
of
the
facts
stated
therein
under
Section
10
of
the
Criminal
Justice
Act
1967
in
any
criminal
proceedings
brought
against
G4S
C&J
for
the
alleged
offences
contained
in
the
Indictment.
Term
of
the
Agreement
4.
This
Agreement
is
effective
for
a
period
beginning
on
the
date
on
which
the
Court
makes
a
declaration
under
Schedule
17,
Sections
8(1)
and
(3)
of
the
Crime
and
Courts
Act
2013
and
ending
three
years
from
that
date
on
the
17
day
of
July
2023
(the
"Term").
Deferred
Prosecution
5.
In
consideration
of:
a.
prompt
disclosure
in
201A
of
the
material
described
in
paragraph
S
of
the
Statement
of
Facts,
and
b.
past
co-operation
as
described
in
paragraph
10
of
the
Statement
of
Facts
and
future
co-operation
as
described
in
part
A
below,
and
c.
12ck
of
a
history
of
similar
conduct
involving
prior
criminal,
civil
or
regi.datory
enforcement
actions,
and
d.
agreeing
in
201Q
to
pay
the
UK's
Ministry
of
Justice
("MoJ"j
£121,268,715,
which
included
£22,115,505,
representing
a
50%
share
of
"[uJnanticipated
cost
efficiencies"
experienced
by
G4S
C&J
but
not
disclosed
to
the
MoJ
over
the
life
of
the
three
contracts
for
electronic
monitoring
services
G4S
C&J
serviced
for
the
MoJ
from
2005
to
2014:
and
e.
payment
of
a
financial
penalty
in
the
amount
of
£38,513,277;
and
f.
payment
of
the
SFO's
reasonable
investigation
costs;
and
(ii)
G4S
plc's:
a.
provision
of
the
Undertaking
included
as
Attachment
A
to
this
Agreement,
which
guarantees
the
corporate
renewal
measures
described
in
Section
F
below.
b.
significant
remediation
following
the
conduct
described
in
the
Statement
of
Facts,
including:
i.
Making
substantial
changes
to
its
senior
management,
including
but
not
limited
to
its
Chief
Financial
Officer;
and
ii.
Subjecting
itself
to
external
review
and
examination
in
order
to
assess
the
quality
of
its
corporate
renewal
plan
and
the
success
of
certain
aspects
of
its
internal
controls;
and
iii.
Undertaking
a
number
of
changes
to
strengthen
assurance
activities,
operating
practices,
controls,
policies,
and
procedures
throughout
its
operations
in
order
to
ensure
they
are
proportionate,
risk
-based,
and
regularly
reviewed;
and
c.
agreement,
at
its
own
expense,
to
complete
the
actions
required
in
part
F
below.
(iii)
The
Cabinet
Office's
determination
that,
subject
to
this
Agreement
being
approved,
it
would
be
appropriate
for
government
departments
to
continue
with
business
as
usual
on
current
contracts
with
G4S
plc
and
with
new
procurements
where
GaS
plc
is
or
may
be
a
bidder.
z

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