Tesco two ex-top-managers were accused of overstating profits

Tesco two ex-top-managers were accused of overstating profits

09.10.2018 12:10

The British retailer Tesco two former top-managers were brought to court on charges in the fraud and the financial statements’ falsification in order to inflate the company’s profits.

Interfax writes about this with reference to “The Guardian”. The defendants are Chris Bush, who previously worked at Tesco as managing director, and John Scowler, the former commercial director for the food segment.

The hole in the amount of 250 million pounds sterling ($ 300 million) formed in Tesco reporting as a result of their actions in 2014.  In the same year September, the company was forced to adjust its profit data, and the financial report publication with corrections excited the stock market and the London City. Then Tesco lost about 2 billion pounds of capitalization.

Bush and Scowler put pressure on subordinates, according to the investigation, demanding that the reporting reflect profits that have not yet been received, in violation the accounting rules and principles.

Top-managers were aware that their actions would lead to Tesco’s profit and its shares value overestimation, according to the prosecution. As a result, “real people lost real money”, – prosecutor Sasha Vass stated, implying Tesco shareholders.

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