Patel ordered Mike Lynch to be handed over to the United States under an autonomy contract in 2011

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British Home Secretary Priti Patel has ordered the surrender of Mike Lynch, the founder of software maker Autonomy’s billionaire, to face a criminal trial in the United States.

The move came just hours after Lynch lost a well-known civil lawsuit filed by Hewlett Packard Enterprise after acquiring a British tech company for $ 11 billion more than a decade ago.

The Home Office confirmed that Lynch’s migration to the United States was ordered late Friday. He faces 14 plots and frauds there in connection with the autonomy arrangement.

Lynch appealed to Patel’s decision on Friday and vowed to continue the fight against extradition in the United States. This process can take years.

Former Autonomy Chief Financial Officers Lynch and Saddam Hussein were sued by HPE for manipulating Software Group accounts and charged a Silicon Valley company an additional $ 5 billion when they acquired Autonomy in 2011. I made you pay.

Judge Robert Hildyard ruled on Friday that HPE was “substantially successful” in its claim against Lynch, but the damages would be “much less” than HPE’s $ 5 billion claim. Both Lynch and Hussein denied the nine-month trial allegations and misconduct. Hildyard will make his full decision at a later stage.

The conclusions reached by Hildyard are important, as the civil proceedings in London covered the same allegations and heard from several of the same witnesses because they testified in a criminal trial in the United States. The judge’s conclusion was communicated on Friday morning. That is, Patel had time to take them into account when making her decisions.

Patel’s decision means that Lynch must file an appeal for surrender within a few days, effectively initiating a long legal process.

Clifford Chance’s lawyer, Chris Morbiro, who represents Lynch, said the client categorically denied the criminal accusation in the United States and argued that: It needs to be resolved. “

Hildyard’s decision came two years after the High Court’s trial ended and was postponed due to the extraordinary complexity of the case, one of Britain’s largest civil fraud trials.

The judge read a summary of his conclusions on Friday’s High Court hearing. He discovered that Autonomy’s hardware resale program existed to make up for the lack of software revenue, which was “fraud” and that the defendant “knows this well.”

The judge said these “lossy transactions were not commercially justified on any grounds.” They were hidden because their revelation would have revealed that Autonomy’s software business did not generate accelerating profits that “had a big impact on prices.”

He found that HPE relied on what was said about Autonomy’s revenue in the accounting material and was motivated to pay Autonomy $ 11 billion.

Lynch and Hussein were aware of selling autonomy to value-added resellers (VARs) aimed at filling the shortfall in the software business. Deloitte, an autonomy accountant, “did not see the big picture,” the judge added.

In a High Court trial, HPE accused Lynch of saying “after lying” and “unreliable” in the testimony box. During a court hearing, Lynch accused HPE of filing a lawsuit because the board was suffering from “buyer remorse.” Meg Whitman, CEO of HP at the time of the deal, said he saw Autonomy as a “headache” because he was “confused and was fighting fire in many ways.” Insisted.

HPE filed a proceeding in November 2012 after deciding to charge $ 8 billion in impairment charges for the transaction. This is a blame for “fraud” by the Autonomy team.

In September 2020, a decision of the Financial Reporting Council ordered Deloitte to: Pay a record £ 15m fineAnd £ 5.6 million in legal costs for serious illegal activity related to autonomy audits.

HPE said in a statement on Friday: “Dr. Lynch and Hussein have cheated and deliberately misunderstood the market and Hewlett-Packard. HPE is pleased that the judge has made them accountable.”

Clifford Chance’s lawyer, Kelwin Nichols, who represents Lynch, said in a statement that the High Court’s decision was “disappointed” and Lynch will appeal.

Patel ordered Mike Lynch to be handed over to the United States under an autonomy contract in 2011

Source link Patel ordered Mike Lynch to be handed over to the United States under an autonomy contract in 2011

The post Patel ordered Mike Lynch to be handed over to the United States under an autonomy contract in 2011 appeared first on Eminetra.

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