Ex-Serco Execs Say Shifting Gov't Contract Profits Is Lawful
Law360, London (April 7, 2021, 6:29 PM BST) -- Serco Group PLC's practice of diverting profits from selling electronic tagging services to the British government was "legitimate" despite being "unattractive and unpalatable," the lawyer for one of the outsourcer's former executives charged with fraud has told a London jury.
Counsel for Nicholas Woods, Serco's former finance director of home affairs, said on Wednesday that the strategy of paying higher charges to Serco Geografix, the subsidiary that ran the electronic tagging service, to reduce the profits it disclosed to the Ministry of Justice was an "established company policy."
"For commercial and strategic reasons, many large companies conduct business by moving profits...
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