Former Tesco CEO Philip Clarke will not be charged by the Serious Fraud Office ( SEC ) with regard to the supermarket ’s accounting scandal , on the grounds of insufficient evidence . The scandal saw the company overstate its profits by £ 326 m in 2010 . Three former UK Tesco directors , Carl Smith , former finance director ; Christopher Smith , former managing director ; and John Scouler , former commercial director for food , have each been charged with fraud by abuse of office and false accounting in relation to the scandal . Unconfirmed reports in recent weeks had suggested Clarke would escape prosecution. The charges carry potential sentences of 10 and seven years in jail respectively .
Former Tesco CEO Philip Clarke will not be charged by the Serious Fraud Office ( SEC ) with regard to the supermarket ’s accounting scandal , on the grounds of insufficient evidence . The scandal saw the company overstate its profits by £ 326 m in 2010 . Three former UK Tesco directors , Carl Smith , former finance director ; Christopher Smith , former managing director ; and John Scouler , former commercial director for food , have each been charged with fraud by abuse of office and false accounting in relation to the scandal . The charges carry potential sentences of 10 and seven years in jail respectively .