British tech founder Mike Lynch committed fraud, US prosecutor says

SAN FRANCISCO :A U.S. prosecutor told jurors on Monday there used to be no real looking doubt that British tech pioneer Mike Lynch directed fraud at instrument firm Autonomy sooner than he sold it for $11 billion to Hewlett-Packard, as Lynch’s prison trial neared its end.

The 2011 deal used to be one in all the excellent British tech offers at the time, but speedily went sour. HP wrote down Autonomy’s price by $8.8 billion inner a yr of the acquisition.

Assistant U.S. Criminal legit Robert Leach told jurors on Monday they ought to identify no longer want any real looking doubt there used to be fraud at Autonomy, and that Lynch directed it.

Lynch and old Autonomy finance govt Stephen Chamberlain face charges of fraud and conspiracy for allegedly scheming to inflate the firm’s earnings starting in 2009, partly to entice a purchaser.

Lynch’s protection crew scored a bag last week when U.S. District Reach to a resolution Charles Breyer threw out one count of securities fraud as no longer supported by the evidence. Lynch mute faces one count of conspiracy and 14 counts of wire fraud.

The Cambridge College-trained entrepreneur took the stand in his have protection at the trial, denying wrongdoing and telling jurors that HP botched the two companies’ integration.

Prosecutors scream the pair padded Autonomy’s funds in several ways, in conjunction with again-dated agreements and “spherical-day out” offers that fronted cash to clients via erroneous contracts.

On the trial, which started in mid-March, jurors have heard from more than 30 govt witnesses in conjunction with Leo Apotheker, the old HP CEO who used to be fired weeks after the Autonomy deal used to be launched.

Lynch’s simply crew has argued that HP used to be so desperate to find Autonomy sooner than doable competitors that it rushed via due diligence sooner than the sale.

On the stand, Lynch acknowledged he had been centered on tech points, and entrusted cash matters and the accounting decisions at scenario to Sushovan Hussain, Autonomy’s then-chief monetary officer.

Hussain used to be individually convicted in 2018 at a trial in the same court on charges of conspiracy, wire fraud and securities fraud connected to the take care of HP. He used to be released from U.S. prison in January after serving a 5-yr sentence.

Lynch used to be one in all the UK’s leading tech entrepreneurs, drawing comparisons to Apple cofounder Steve Jobs and Microsoft cofounder Bill Gates.

The Autonomy acquisition used to be supposed to gas HP’s instrument commercial. As an different, it spawned a chain of bitter and pricey simply battles.

HP largely received a civil lawsuit in opposition to Lynch and Hussain in London in 2022, even though damages have no longer but been determined. The firm is in the hunt for $4 billion.