Former Autonomy boss Lynch to fight United States fraud charges

Former Autonomy boss Lynch to fight United States fraud charges

The indictment also demands Lynch pay back $815m from the HP takeover, and $4m from Chamberlain.

"HP has sought to blame Autonomy for its own crippling errors, and has falsely accused Mike Lynch to cover its own tracks", they said in a statement. These stale allegations are meritless and we reject them emphatically.

"This case is unsupportable".

In his downtime, Mr Lynch is said to enjoy caring for rare breeds which include red poll cattle which he keeps at his Suffolk home. Lynch, 18-cr-00577, U.S. District Court, Northern District of California (San Francisco). "The claims amount to a business dispute over the application of United Kingdom accounting standards, which is the subject of a civil case with HP in the courts of England, where it belongs".

"Mike Lynch will not be a scapegoat for their failures. He has done nothing wrong and will vigorously defend the charges against him".

"Our results once again demonstrate HP's consistent performance with full-year non-GAAP [generally accepted accounting principles] EPS [earnings per share] growth of 22pc year over year and free cash flow generation of $4.2bn", said Dion Weisler, president and CEO of HP Inc. HP has a long history of failed acquisitions.

That is, artificially inflating revenues by backdating contracts, channel stuffing, and other forms of accounting fraud.

Earlier this year, the Financial Reporting Council began disciplinary proceedings against former bosses at Autonomy and auditors at Deloitte linked to the alleged fraud at the software firm.

They did this, according to the charge sheet, to hit their targets and thus guarantee their salaries, bonuses, and stock options, and to make Autonomy look attractive to purchasers - which it did, given that HP paid 11-figures for the company and its shares.

Lynch's lawyers told the Financial Times that the charges were a "travesty of justice" and that the proper venue for the case is the courts of England where HPE is pursuing a civil case against Lynch "over the application of United Kingdom accounting standards". Lynch and Hussain also face a $5.1 billion civil case filed by Hewlett-Packard in London.

An investigation by the Serious Fraud Office into the sale of Autonomy has been brought to a close.

Dr Lynch founded Autonomy, which was spun out from his previous company, Neurodynamics, in 1996.



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