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Former Autonomy CFO found guilty of fraud

US court finds Sushovan Hussain guilty of fraud in $11.7bn sale to HP

A court in the US found the former Autonomy CFO guilty of fraud.
A court in the US found the former Autonomy CFO guilty of fraud.

The former CFO of UK software company Autonomy has been found guilty of fraud in the US.

Sushovan Hussain has been found guilty inflating the company's value ahead of its sale to HP in 2011.

HP bought Autonomy, a developer of big data and information governance software, for $11.7bn, but was later forced to write off most of the investment. HP sold the remainder of Autonomy in 2016.

The prosecution said Hussain had carried out the fraud from 2009.

HP has claimed that Autonomy inflated revenue and sales figures to make the company more attractive to buyers. Former Autonomy CEO Mike Lynch has denied the claims. The company has lodged an ongoing civil suit against Hussain and Lynch.

Hussain was found guilty on 16 charges of fraud, with a possible 20 years in prison and $250,000 fine for each offence. His lawyers plan to appeal.

HP said in a statement: "As we have consistently maintained, Mr Hussain engaged in outright fraud and deliberately misled the market about non-existent sales through a series of calculated sham transactions.

"Autonomy manipulated their revenue, and quarterly results, making an accurate valuation impossible.

"That Mr Hussain attempted to depict the fraud as nothing more than a misunderstanding of international accounting rules was, and still remains, patently ridiculous - and the jury has now held him accountable for his role in defrauding HP."