A formal criminal investigation has been opened into accounting errors at Britain’s supermarket chain Tesco.<br /><br />The UK’s Serious Fraud Office will look into the overstatement by 263 million pounds (334 million euros) of Tesco’s profits in the first six months of 2014. <br /><br />The accounting irregularities were caused by putting deals with suppliers on the books too early. <br /><br />The scandal led to the suspension of eight senior members of staff and hammered the company’s reputation sending its shares into freefall. <br /><br />Tesco said the eight remain employees and have been asked to step aside while the matter is investigated, adding that there was no suspicion of wrongdoing.<br /><br />When the SFO launches a full criminal investigation against a company or individuals it has to be satisfied that there are reasonable grounds to believe that conduct might involve serious or complex fraud or bribery.<br /><br />Such investigations can take years to complete. The agency will initially spend months sifting through vast quantities of digital data and other evidence, while seeking to identify and trace witnesses.<br /><br />Tesco is already facing at least investor lawsuit in the United States over the problem.<br /><br />Britain’s accounting watchdog, the Financial Reporting Council, is also examining how the error came about.<br /><br />with Reuters
