US prosecutors hit Autonomy founder Lynch with new charges over sale to HP

Autonomy founder Mike Lynch has strongly denied criminal charges which were levelled against him by US authorities last week.

A spokesperson for the British entrepreneur hit back at three new claims over the $11bn (£8.4bn) sale of his software business to Hewlett-Packard (HP) in 2011.

Read more: UK tech entrepreneur Mike Lynch charged in US over Autonomy deal

Prosecutors added the charges on Friday, including allegations of securities fraud, with a maximum 25-year prison term.

It brings the total number of charges facing the businessman at a San Francisco court up to 17.

“These are baseless, egregious charges issued on the eve of the trial in the UK, where this case belongs, and Dr Lynch denies them vigorously,” they said.

It comes as HP’s $5bn civil fraud trial against Lynch is set to start in the High Court in London tomorrow. The US computing giant claims that Lynch and former Autonomy finance chief Sushovan Hussain were involved in accounting irregularities, making it overpay for the firm.

Read more: HP loses more from Autonomy

Lynch denies wrongdoing, blaming the failed acquisition on HP’s management.

Last year Hussain was convicted of wire fraud by a federal jury in San Francisco. He is due to be sentenced in May, but is expected to appeal the verdict.