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US tries to extradite Michael Lynch

by on03 December 2019

Wants him on wire fraud

The United States has formally requested the extradition of Michael Lynch, the British tech billionaire who sold his data company Autonomy to Hewlett Packard in an ill-fated $11.1 billion deal, to face charges including securities fraud, wire fraud and conspiracy.

The US Embassy in London submitted the extradition request on 21 November for Lynch to stand trial in the United States. Lynch is currently battling HP in London’s High Court.

HP is seeking damages of $5 billion from Lynch and Sushovan Hussain, the former chief financial officer of Autonomy, alleging that they inflated the value of the company before selling it. HP took an $8.8 billion write-down a year after buying Autonomy.

Lynch has denied the accusations, saying HP mismanaged the acquisition and are using the British as fall guys for its incompetence. 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”.

There is a damn good reason for Lynch not to go to the US. Hussain has already been sentenced in San Francisco, receiving a five-year prison term and a $4 million fine in May. He was ordered to forfeit $6.1 million after being convicted on 16 counts of wire fraud, securities fraud and conspiracy.

Hussain was granted bail in June while he appeals his conviction. In allowing the appeal, the U.S. Court of Appeals for the Ninth Circuit said it raised a “substantial question” of law.

Last modified on 03 December 2019
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