On 23 October Smith & Ouzman Limited, a UK based printing company, appeared in court on charges brought by the Serious Fraud Office (“SFO“). The charges relate to allegations of agreeing to make payments totalling nearly half a million pounds, contrary to section 1 of the Prevention of Corruption Act 1906. It is alleged that these payments were used to influence the award of business contracts to the company in Mauritania, Ghana, Somaliland and Kenya.
Alongside the company itself, the individuals charged were former Chairman Chris Smith, Sales and Marketing Director, Nick Smith, International Sales Manager, Tim Forrester, and agent for the business, Abdirahman Omar.
Smith & Ouzman produces a wide range of specialist security print items including cheques, tickets, ballot papers, local currencies and other secure documents. It is based in Eastbourne and employs over 100 people. The next hearing is scheduled for November 6 at Southwark Crown Court.
As a practical matter, from a prosecutor’s point of view, it is much easier to prove criminal liability arising from an officer’s conduct if the company is a smaller company, which makes companies such as Smith & Ouzman tempting targets for enforcement action. Where larger companies are involved, it is difficult to prove that particular individuals represent the “directing mind and will” of the company, which is a necessary precondition for a successful corporate prosecution.
Further, evidential difficulties may arise where the company concerned has a diffuse structure, because of the need to link the offence to an officer. The smaller the company, the more likely it will be that guilty knowledge can be attributed to the officer and, therefore, to the company itself.
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