Deferred prosecution means the charges are dropped after certain conditions are satisfied. Usually a fine and/or community service and sometimes just not getting in trouble again for a period of time - i.e., the state defers prosecution (does not prosecute the charges) pending satisfaction of conditions. Once satisfied, charges are dropped. At least be honest when you post, others might listen more. It is irrelevant to what he is doing with this company now. Not a red flag at all