A brief guide to the SFO: what it does and the cases it investigates

The Serious Fraud Office (SFO) is a Government department which fights complex financial crime. It forms part of the UK criminal justice system in England, Wales, and Northern Ireland.

The SFO is unusual because it has its own powers of prosecution. That means that the same team of lawyers and forensics experts can be involved in the investigation and the prosecution, so that the detail of these complex cases does not get lost.

The SFO carries out investigations, which often include searching premises and seizing information. With their prosecution powers, the SFO can compel people to attend interviews or produce information, and it can bring charges against individuals and companies.

It also has powers to trace, restrain, and recover the proceeds of complex economic crime. It can seize cars, houses, and anything else that has been bought with money that criminals received through their crimes.

By way of example, in 2023-2024, the SFO secured £1.7m in recovery of criminal proceeds. These came from property, rental profits and cash.

Cases the SFO investigates

The SFO investigates offences linked to complex fraud, bribery, and corruption.

These cases are complicated and involve large amounts of evidence and forensic investigation. On average, it takes 4.4 years from the time that the investigation is formally opened until the first outcome.

A couple of the most high-profile investigations carried out by the SFO relate to Rolls Royce and Tesco.

Rolls Royce

The largest investigation since the SFO’s inception was into Rolls-Royce Plc and one of its subsidiaries. There were six charges of conspiracy to corrupt, five charges of failure to prevent bribery, and one charge of false accounting.

The charges related to payments made to intermediaries in overseas markets, and those payments dated back to 1989. The payments related to the award of large value contracts, which earned the business over £250 million.

Rolls Royce entered into a Deferred Prosecution Agreement (DPA) with the SFO, which means it was not convicted of the charges, on the condition that it complied with the terms of the DPA.

As part of those terms, Rolls Royce had to pay £497 million plus interest and costs.

Tesco

It was revealed in September 2014 that Tesco had overstated its profits by £250m and some of its high-ranking executives were suspended.

The SFO carried out a two-year investigation, looking at false accounting practices within the business.

Again, this case ended with a DPA and Tesco paid a £129 million penalty. 

While both of these investigations finished with DPAs, there have only been 12 DPAs agreed since the scheme was introduced in 2014. They are not particularly common, but they are being used more frequently.

Investigations and convictions over the last 5 years

It can take a long time for investigations to lead to convictions, and finding sufficient evidence for a prosecution can be challenging. In 2023-2024, the SFO achieved four convictions, according to its annual report.

But at any one time, the SFO has several cases active. The most recently published annual report stated that the SFO had an active caseload of around 130 cases.

Here are a few that you might have heard about recently:

Glencore

Glencore is a commodities trader and a mining company, whose oil and gas operations are based in London.

The SFO announced an investigation into them on 5 December 2019, and 4.5 years later, on 24 May 2024, the SFO charged Glencore Energy (UK) with seven counts of bribery. Glencore agents and employees had paid for preferential access to oil. The bribes were worth over $25 million and were approved by the company.

Glencore pleaded guilty to all counts on 3 November 2022 and was ordered to pay £280 million in a penalty and the confiscation of the proceeds of crime.

Axiom Ince

Axiom Ince was a large international law firm. It ceased trading in October 2023, after the Solicitors Regulation Authority intervened when around £66 million of client money was found to be misappropriated from its client account.

On 14 November 2023 the SFO arrested seven people and searched nine sites belonging to Axiom, in order to seize evidence.

The case is still ongoing but the SFO charged five people on 20 December 2024 for offences of fraud, forgery, and the destruction of documents.

This was one of the fastest investigations to result in criminal charges, which were brought 15 months after the investigation was opened.

Patisserie Holdings PLC

Patisserie Holdings Plc were the parent company of the Patisserie Valerie business.

The SFO’s investigation began in October 2018, which found that the business had been hiding debts of £10 million and inflating the amount of cash that the shops had.

In September 2023, the SFO issued charges against four individuals. They have pleaded not guilty and there is a trial date set for March 2026.

Legal representation for SFO investigations

If you are facing investigation from the SFO, your immediate response can dictate how the investigation will continue and end. Co-operation is key in these investigations.

We can help you navigate the investigation, negotiate with the SFO, challenge any conduct, and find a way to a DPA if it’s possible.

Please get in touch if you need legal representation for an SFO investigation.

0333 3448377 | info@harewoodlaw.com