Tech titan Mike Lynch faces trial over alleged $11.7 Billion fraud in the sale of Autonomy

British technology luminary Mike Lynch is now at the centre of a high-profile trial in San Francisco, accused of masterminding a colossal fraud in the sale of his company, Autonomy, to Hewlett-Packard for a staggering $11.7 billion in 2011.

Lynch, along with former Autonomy vice-president of finance Stephen Chamberlain, faces a total of 16 counts of wire and securities fraud, each of which carries a maximum sentence of 20 years in prison. However, Judge Charles Breyer’s pre-trial rulings dealt a blow to Lynch’s defence by denying key evidence aimed at shifting blame to HP management, particularly Meg Whitman.

Despite Lynch’s efforts to portray himself as a victim of HP’s alleged mismanagement, certain damaging statements were not excluded from the trial: the comparisons of his company to the Mafia or James Bond villains were considered of outmost importance, in order to show the relevant amount of control exerted by Lynch over the company. In addition, the exclusion of evidence relating to the period after HP’s acquisition of Autonomy poses a significant challenge to Lynch’s defence strategy.

The prosecution alleges that Lynch and Chamberlain artificially inflated Autonomy’s revenues through fraudulent practices, and key witnesses, including Christopher Egan and Joel Scott, are expected to play a key role in proving the prosecution’s case. However, Lynch’s defence team is undeterred and still hopes to introduce new evidence into the trial in an attempt to refute the allegations and influence the outcome of the trial.

CC: Boris Zago