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Thursday, May 30, 2024

Autonomy founder Mike Lynch extradited to US. He faces 20 years in prison

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Mike Lynch, co-founder of British company Autonomy, has been extradited to the United States to face criminal charges. Lynch faced 17 charges in connection with Hewlett Packard’s $11 billion acquisition of Autonomy. The businessman was once compared to Bill Gates and now faces 20 years in prison for fraud charges.

Lynch faced 17 charges in connection with Hewlett Packard’s $11 billion acquisition of Autonomy. Autonomy was a leading UK tech company before it fell apart after it was bought by HP in 2011. After the transaction, the Americans discovered that its value was significantly overstated.

$100 million bail

The Home Office said on Friday that Lynch was extradited on May 11. According to Reuters, the man arrived in San Francisco on a commercial flight accompanied by US police officers. When Lynch appeared in court on Thursday, the judge set bail at $100 million, withholding his passport and placing him under 24-hour guard.

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Mike LynchYui Mok/PA Images/Forum

Lynch, 57, who has always denied any wrongdoing, faces 20 years in prison. Lynch has pleaded not guilty to any of the charges against him, and a hearing is scheduled for May 19 to set a date for his trial. His fortune was estimated by a US court at $450 million. The once-vaunted entrepreneur has spent the past decade in court battles over HP’s takeover of his company.

Lynch denies the allegations

The deal quickly proved flawed. In the year following the acquisition of Autonomy, HP reduced the company’s value by $8.8 billion. The company then filed a civil suit against Lynch and Sushovan Hussain, Autonomy’s former chief financial officer.

In January 2022, a UK judge ruled that Lynch had planned and carried out an elaborate scam designed to inflate Autonomy’s value. At the same time, in the meantime USA The former tech star has been charged with criminal charges for bank fraud and securities fraud.

Lynch, in turn, claims that HP does not know what it is doing with Autonomy and does not understand its technology.

In 2019, Lynch’s associate, former Autonomy CFO Sushovan Hussain, was sentenced in the United States to five years in prison for fraud.

Main photo source: Yui Mok/PA Images/Forum



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