Ex-Autonomy exec agrees to be a witness for HP fraud case

Christopher Egan takes US prosecutors' deal

A businessman in handcuffs

A former Autonomy exec has entered into a deferred agreement with US prosecutors over charges that he and others deceived investors about the company's ill-fated $11bn (£9bn) acquisition by Hewlett-Packard.

Christopher Egan, former CEO and head of sales for Autonomy in the US, agreed to become a cooperating witness in the agreement filed in federal court in San Francisco this week.

Based on his "willingness to come forward and confess his wrongdoing" prosecutors said they had agreed "not to prosecute the defendant for any other conduct arising out of the investigation that led to the information".

Egan settled an administrative proceeding with the Securities and Exchange Commission, which alleged that Egan had participated in "fraudulent" accounting. In November 2016 he agreed to pay more than $923,000 to resolve charges by the SEC.

The filing said the the deal's terms were subject to the completion of a related case against former Autonomy chief financial officer Sushovan Hussain.

In January Hussain pleaded not guilty to charges he inflated the price of his company's $11bn acquisition by Hewlett-Packard.

Hussain is scheduled to face trial on January 29.

Separately, HP is seeking damages of $5.1bn against Hussain and co-founder Michael Lynch in London's High Court, alleging that they engaged in fraudulent activities while executives at Autonomy.

Lynch is countersuing HP, alleging the firm has slandered his name, and is seeking $160m in damages. Both cases are due to appear in High Court next year.

The Register has asked HPE, formerly HP, for a comment. ®




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