UK Fraud Office Probing Security Cos.' Prisoner E-Tag Contract

By Eric Hornbeck (November 4, 2013, 5:22 PM EST) -- British prosecutors said Monday that they've begun a criminal investigation into allegations that two security companies overcharged the U.K.'s Ministry of Justice millions of British pounds for an electronic prisoner tagging contract.

David Green, the director of the U.K.'s Serious Fraud Office, announced the investigation into Serco Group PLC and rival G4S PLC in a brief statement, following the resignation of the companies' CEOs last week and U.K. Justice Secretary Chris Grayling requesting that law enforcement officials open for an investigation in July.

Serco and GS4 said they will cooperate with the investigation.

The two companies have faced growing scrutiny over...

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