Original URL: http://www.theregister.co.uk/2010/01/06/isoft_charges/

FSA charges four ex-directors of NHS software supplier

Former iSoft bosses face conspiracy charges

By John Oates

Posted in Financial News, 6th January 2010 13:49 GMT

The Financial Services Authority has confirmed that it is starting criminal proceedings against four former directors of iSoft Group plc - the major provider of patient records software for the NHS's National Programme for IT.

Patrick Cryne, Stephen Graham, Timothy Whiston and John Whelan have been summoned to appear at the City of Westminster Magistrates Court on 29 January to face charges of conspiracy to make misleading statements.

The company told the London Stock Exchange about the investigation in August 2004.

It said at that time that commercial director Steve Graham, and another employee, had been put on special leave following a company investigation into accounting irregularities in 2004 and 2005.

iSoft shares collapsed in the wake of that news and in September 2006 it emerged that the Department of Health had bailed out the struggling software firm with £82m of taxpayers' cash. Then health secretary Patricia Hewitt told Parliament that the firm received payments in April of 2005 and 2006. She also confirmed that £37.9m had been paid back by July 2006.

A spokesman for the Department of Health said all this money has now been repaid.

The firm was taken over by Australia-based IBA Health in 2007.

Late last year the company restructured its debt - it now has a term loan of £60m plus a revolving credit facility of £60m for the next three and a half years.

Graham was sacked by iSoft in 2007.

Today iSoft said it welcomed the end of the investigation.®