Judge slams CPS in fraud trial 'scandal'

A senior judge has halted a highprofile fraud trial after accusing the Crown Prosecution Service of a string of "scandalous" mistakes.

The collapse of the case, which echoes the debacle over the Jubilee line affair, leaves the taxpayer with a legal bill for up to ?6 million.

At the heart of the prosecution was Susan Melton and a colleague at the Prudential Insurance giant.

Mrs Melton, her husband and others had been brought in to sort out problems involving the mis-selling of pensions but were alleged to have defrauded the company in the process.

However, after a devastating twohourruling by Judge David Higgins-the Crown was left with no choice but to offer no evidence.

The judge told Southwark Crown Court: "I am entirely satisfied that because of the prosecution authorities' conduct, this case is now incapable of a satisfactory solution."

Mrs Melton, 46, and Colin Glossop, 49, were appointed by Prudential to head its pension review unit at a time when it was being investigated over pension mis-selling.

Mrs Melton subcontracted her husband Michael, 60, Hugh Caswell, 47, and David Gilbert, 57, to help. But an anonymous tip-off in 2001 claimed the subcontracting firms had been overcharging.

This led to a civil action which the judge said was settled for a "modest amount" but police were also called in and the five were charged.

The judge said only a "superficial investigation" was carried out in the initial stages of the CPS inquiry, which was undermined by a "lack of communications" with the Prudential and papers being destroyed.

Mrs Melton and Mr Glossop were formally cleared of conspiracy to corrupt.