The UK’s Serious Fraud Office (SFO) has dropped its prosecution of former executives at London Mining following a decade-long investigation into allegations of bribery, citing issues with its evidence review software and a series of procedural challenges. The decision, announced , marks the latest setback for the agency and raises questions about the integrity of evidence handling in complex fraud cases.
The SFO offered no evidence at Southwark Crown Court, leading to the acquittal of former London Mining chief executive David “Graeme” Hossie, former chief financial officer Rachel Rhodes, and former international business consultant Ariel Armon. A costs hearing will follow. The original trial had been scheduled to begin in April, but was delayed in December, ultimately contributing to the decision to discontinue the case.
The collapse of the prosecution stems from problems identified with the SFO’s legacy document review software, which raised concerns that some evidence files may not have been properly examined. The agency revealed that the issue could potentially affect around 20 cases, although one has already been reviewed and cleared. The SFO is currently assessing the remaining cases to determine if any crucial evidence was overlooked.
This represents not the first time disclosure issues have plagued the London Mining investigation. Similar problems with the SFO’s evidence review systems emerged in 2022, contributing to the collapse of a previous prosecution related to the case. These earlier difficulties led to the abandonment of a case against three former executives at security company G4S in 2023.
The SFO has been undertaking a comprehensive review of past and present cases in response to these ongoing disclosure issues, including an assessment of its current technology. To date, the agency has reviewed 66 historic cases with convictions, clearing 63 and leaving three still under assessment.
In a statement, the SFO explained its decision, stating it had concluded there was “no longer a realistic prospect of convictions” in the London Mining case. The agency cited a combination of factors, including “significant delays to trial, difficulties obtaining and reviewing material, and challenges with witness evidence.” The SFO emphasized that the decision reflects its commitment to prioritizing resources effectively.
The principle of disclosure – the obligation of the prosecution to provide the defense with all relevant evidence, including that which might undermine its case – is a cornerstone of the English legal system. However, the increasing volume of digital data in modern fraud investigations presents significant challenges. Analyzing millions of documents requires robust and reliable technology, and failures in these systems can have devastating consequences for prosecutions.
Ariel Armon, speaking after the acquittal, described the past decade as “a living nightmare” and criticized the SFO for treating him “as guilty until proven otherwise.” He further stated that his ordeal, culminating in an acquittal without a defense being presented, represented “millions of pounds of wasted taxpayer money.” Hossie echoed this sentiment, expressing relief that the prosecution had been dropped after more than ten years and acknowledging the “significant professional and personal burden” the process had imposed.
Rachel Rhodes stated she was “relieved that this matter has finally come to an end” and reiterated her long-held claim of innocence.
The outcome of the London Mining prosecution is the latest in a series of challenges for the SFO. This week, another high-profile trial – the prosecution of four defendants over the collapse of Patisserie Valerie – was delayed by nearly two years, partly due to court capacity issues. SFO director Nick Ephgrave announced last month that he would step down in March, halfway through his five-year tenure, citing personal reasons. He was the first non-lawyer to lead the agency, having been appointed in September 2023.
The broader context of the UK criminal justice system is also facing significant strain. A backlog of nearly 80,000 criminal cases in the Crown Courts of England and Wales is leading to extensive delays in trials. The government is currently considering a major overhaul of the courts system, including proposals to remove juries from thousands of cases, in an effort to address the backlog.
The anticipated delay in rescheduling the London Mining case was also cited as a contributing factor in the SFO’s decision to drop the charges. The agency’s struggles with evidence disclosure and the broader pressures on the court system underscore the difficulties of prosecuting complex financial crimes in the modern era.
Christopher Houssemayne du Boulay, a partner at Hickman & Rose who represented Ariel Armon, played a key role in uncovering the disclosure failures. He was also part of the team that defended clients in the SFO’s G4S prosecution, which was also dropped due to disclosure issues related to the Autonomy e-disclosure system. He noted that the collapse of the G4S proceedings should have served as a “wakeup call” for the SFO and expressed concern that the agency’s e-discovery unit still lacks proper accreditation, which is now mandatory for compliance with the Forensic Science Regulator’s Code of Practice.
