SFO bins Autonomy investigation

UK fraud investigator claims there is 'insufficient evidence' for a conviction

Despite being referred to the case by HP itself in 2013, the Serious Fraud Office (SFO) has closed its case files on the ongoing Autonomy saga, citing insufficient evidence.

HP rocked the industry in 2013 when it accused the Autonomy management team of cooking the books, after taking an $8.8bn (£5.9bn) write-down on the UK-based software firm, most of it attributable to alleged "accounting improprieties".

Autonomy founder Mike Lynch pocketed about £500m from the sale, but had geared himself up for a lengthy court battle.

The case is still being looked into by the US Justice Department, aided by the FBI, and last year it emerged HP would be suing the UK arm of Deloitte over its role in the firm’s buyout of Autonomy.

However, in a statement, the SFO said: "In respect of some aspects of the allegations, the SFO has concluded that, on the information available to it, there is insufficient evidence for a realistic prospect of conviction.

"In respect of other aspects and on the application of well-established principles, jurisdiction over the investigation has been ceded to the US authorities whose investigation is ongoing."

An HP representative said: "HP remains committed to holding the architects of the Autonomy fraud accountable. As the SFO made clear, the US authorities are continuing their investigation and we continue to cooperate with that investigation."

In addition Mike Lynch sent CRN his comment: "We welcome the SFO's decision to close its investigation. As we have always said, HP's allegations are false, and we are pleased that after a two-year review of the material presented by HP, the SFO has concluded that there is not a case to pursue.

"Let's remember, HP made allegations of a $5bn dollar fraud, and presented the case in public as a slam dunk. HP now faces serious questions of its own about its conduct in this case and the false statements it has made.”