Collapse of Serco Fraud Trial a ‘Disaster’ for U.K. Prosecutor

The Serious Fraud Office was dealt an embarrassing setback after its case against two former Serco Group Plc directors fell apart because the prosecutor failed to disclose evidence.

Simon Marshall and Nicholas Woods were accused of making false representations about an electronic-tagging contract to the U.K. Ministry of Justice. The case centered on allegations they had concealed 12 million pounds ($16.5 million) in profits that ultimately defrauded the British taxpayer.

During the trial, the SFO found that it hadn’t disclosed all the evidence to the defense, calling into question the fairness of the case. The judge rejected its request for ...