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US seeks extradition of British tech billionaire Mike Lynch over $11bn Autonomy sale to HP

The US has formally requested the extradition of British tech billionaire Michael Lynch (pictured) to face fraud charges over the $11.1bn sale of his data company Autonomy to Hewlett Packard.

The US embassy in London submitted the extradition request on 21 November for founder Lynch to stand trial in the US, according to a court filing dated 1 December.

The charges against the UK businessman include securities fraud, wire fraud and conspiracy.

Lynch, who sold his Cambridge-based business in 2011, is currently battling the American IT giant in the High Court in London.

 

Wire fraud charges

Palo Alto-based HP is seeking $5bn in damages from Lynch and Autonomy former chief financial officer of Sushovan Hussain, alleging that they unlawfully pumped up the value of the company before selling it. HP booked an $8.8bn writedown a year after buying the data business.

Lynch denies the accusations, accusing HP of mismanaging the acquisition. He is counter-suing for loss and damages.

The extradition order relates to Lynch’s indictment in San Francisco on 17 counts including wire fraud, conspiracy and securities fraud, which carries a maximum term of 25 years in prison.

A spokesman for Lynch has said the charges are “baseless and egregious”.

 

Appealing conviction

Lynch now faces the decision of whether to fight the order in the UK, something that could further delay the resolution of allegations that stretch back over seven years.

Hussain was sentenced in San Francisco, receiving a five-year prison term and a $4m fine in May. He was also ordered to forfeit $6.1m after being convicted on 16 counts of wire fraud, securities fraud and conspiracy. Hussain was granted bail in June while he appeals his conviction.

 

 

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Roger Baird

Roger Baird

Roger Baird is News Editor at Finixio. He has worked as a financial journalist for 20 years reporting on companies, capital markets and the UK economy.
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