Ex-Wickes bosses cleared of fraud

The ex-DIY executives were accused of false accounting

A jury has thrown out fraud charges against three former top bosses of home improvements retailer Wickes.

The "not guilty" verdict is being seen as a setback for the reputation of the Serious Fraud Office (SFO) by commentators in the City of London.

It is the second high profile courtroom defeat for the SFO this year, and comes at a time when many are demanding more effective action against financial fraud in the wake of major corporate accounting scandals in the United States.

The jury at Southwark Crown Court found the three defendants not guilty on all charges. They were accused of fraudulent trading and making false accounting statements.

Criticism

The three defendants were Henry Sweetbaum, an ex-Chairman and chief executive of Wickes, the firm's ex-finance director Trefor Llewellyn, and Terence Carson, the former finance director of Wickes Building Supplies.

The jury took eight hours to reach its verdict after sitting through 182 hours of evidence during the 10-month trial.

Lawyers for Mr Lewellyn have criticised the SFO's decision to bring the case.

The SFO failed "to unearth critical contemporaneous evidence" which would have "seriously impacted" on the decision to prosecute Mr Lewellyn, said Joanne Rickards of solicitors Peters & Peters.

The SFO has declined to make any further comment on the case.

The SFO was criticised earlier this year over a case of alleged fraud at Deutsche Morgan Grenfell, where it also failed to secure any convictions.

Wickes, the UK's third largest DIY chain, merged with rival Focus Do It All Group in 2000 to create a company with 11% of the UK DIY market.