British tech entrepreneur Mike Lynch has been extradited to the United States to face criminal charges over the $11bn sale of his firm Autonomy to Hewlett-Packard (HP). He is accused of overinflating the value of his software company when he sold it to HP in 2011 and has long fought attempts by US prosecutors to stand trial in America. Last month, he lost an appeal in the High Court arguing that he should instead be tried in the UK.
Lynch was sent to California on Thursday where his trial will take place. In a related case, former Autonomy CFO Sushovan Hussain was jailed for five years and fined millions of dollars in 2019 on 16 counts of fraud, securities fraud, and other charges.
Mike Lynch, co-founder of UK software firm Autonomy and once hailed as Britain's Bill Gates, denies any wrongdoing but could face up to 20 years in prison if convicted. Upon arrival in San Francisco on a commercial flight accompanied by US marshals, a judge ordered him to pay a $100m bond, hand over his passport, and be placed under 24-hour guard supervision for release.
The United States has brought criminal charges against Lynch for wire fraud and securities fraud. According to court documents filed earlier this year: "Lynch engaged in a scheme from at least November 2009 through May 2012...to defraud potential buyers or sellers of shares" including Hewlett-Packard Company."
Lynch currently owns approximately ten percent stake worth around $2.5 billion with his wife Angela Bacares; their combined wealth is estimated at $450 million according_to_the_court_records.
In addition_rulings_suggest_that_Lynch_allegedly_used_various_methods_to_misrepresent_Autonomies_financial_condition_including_false_or_misleading_revenue_recognition_practices_and_inflating_the_ value_of_software_deals.
The extradition and forthcoming trial have grabbed the attention of both the UK and US tech industries, as it continues to shed light on one of the most controversial acquisitions in recent years. In 2011, when Lynch struck a deal with HP, he was considered one of Britain's best-known tech entrepreneurs; however, just a year later, HP took an $8.8 billion write-down related to his sale. The feud between Lynch and Hewlett-Packard has since played out in courts across both countries.
As Mike Lynch faces criminal charges on multiple counts including conspiracy and wire fraud related to Autonomy's sale to HP, all eyes will be on his trial in California while awaiting further developments in ongoing legal battles occurring concurrently in London since 2019.