In a long-awaited move, the Serious Fraud Office (SFO) has brought its first charges under the Bribery Act 2010, just over two years since the Act came into force.
The charges relate to offences of making and accepting a financial advantage, contrary to section 1(1) and 2(1) of the Act, and have been brought against three men connected to a company known as Sustainable AgroEnergy plc. The SFO says that the charges are part of a wider investigation by the department into the promotion and selling of "bio fuel" investment products to UK investors.
The Bribery Act 2010
The Bribery Act 2010 has been in force since 1July 2011, when it created several new offences:
- bribing,
- accepting a bribe,
- bribing a foreign official to either obtain or retain a business advantage, and
- an offence dealing with commercial organisations who fail to prevent bribery by persons associated with them.
However, in recognition of the fact that companies are not able to control all of the actions of their employees, the Act sets out a defence for companies who can show that they had adequate procedures in place to prevent associated persons from committing bribery offences.
The Act also provides for the prosecution in the UK of bribery committed abroad by persons having a close connection with the UK.
Use of the Act so far
Use of the Act has been relatively limited so far, and this is the first time that the SFO has used the Act to bring charges.
According to reports, there are several reasons for this, most notably the fact that the Act is not retrospective – and can only be used where the offence in question was committed after the Act came into force.
The SFO’s remit is also an issue, given that its purpose is to investigate and, if appropriate, prosecute those who commit serious or complex fraud, bribery and corruption. Less complex or less serious cases are dealt with by other prosecutors.
CPS prosecutions
One example of this is the first conviction secured under the Act by the Crown Prosecution Service. This took place in October 2011, when former court official Munir Patel was convicted for accepting a £500 bribe to make a speeding charge disappear. He was later sentenced to six years imprisonment.
Sentencing guidelines
Sentencing for convictions relating to fraud, money laundering and bribery is actually the subject of a consultation by the Sentencing Council for England and Wales at the moment. The Council is looking for comments on draft guidelines on the issue, which it says are likely to lead to tougher sentences for some.
There is also another important bribery-related consultation currently underway. The Director of the SFO and the Director of Public Prosecutions are consulting on a draft Code of Practice setting out their approach to the use of Deferred Prosecution Agreements (DPAs).
DPAs are important in corporate bribery cases, because they allow for companies to be charged but proceedings to be then automatically suspended. They require the company to agree to a number of conditions, which may include payment of a financial penalty, payment of compensation, and co-operation with future prosecutions of individuals. If the conditions are not honoured, the prosecution may resume.
Comments on the consultation are sought by 20 September 2013.
Contact Lewis Nedas’ Criminal Lawyers in London
If you have been charged with a bribery offence or other form of economic crime, you will need specialist legal advice. For further information or to speak to one of our top bribery and corruption solicitors please telephone us on 020 7387 2032, complete our online enquiry form, or contact Jeffrey Lewis, Jeremy Ornstin, Siobhain Egan or Keith Wood.
This blog post is intended as a news item only - no connection between Lewis Nedas and the parties concerned is intended or implied.
