SFO confirms it is investigating Autonomy saga

Founder Mike Lynch will be under spotlight of Serious Fraud Office as it looks into an alleged accounting improprieties

The Serious Fraud Office has confirmed it has opened an investigation into the alleged accounting scandal at Autonomy.

HP shocked the industry last year when it accused the Autonomy management team of cooking the books as it took an $8.8bn (£5.9bn) write-down on the UK software firm, most of which was attributable to alleged 'accounting improprieties'.

Founder Mike Lynch netted about £500m from the sale of the company, but recently was reported to have hired a top legal eagle in preparation for a lengthy court battle.

The case is also being looked at by the US Justice Department, aided by the FBI.

In a statement sent to CRN, the SFO said: "As has been widely reported, allegations have been made to the SFO about the circumstances of the sale in 2011 of Autonomy to Hewlett-Packard. The director of the Serious Fraud Office has decided to open an investigation into those allegations, with a view to using its powers of investigation to allow them to be tested.

"It is, of course, right to point out that the opening of a criminal investigation does not mean that individuals are guilty of a crime or indeed that a crime has been committed."

In an aside, the SFO declared a possible conflict of interest which it is also investigating due to it using Autonomy's Introspect product as a document management tool.

"The SFO is keen to ensure that there is now no conflict of interest, or perception of such a conflict and it is obliged as a first step to make enquiries to ensure that it can continue as the investigating body. It is undertaking this work at present. The SFO will make no further comment while its investigation is under way," the statement added.