Autonomy Founder Mike Lynch Detained in US on Fraud Charges

Autonomy founder Mike Lynch detained in the US Credit: Simon Dawson/Bloomberg

Mike Lynch, the British software mogul behind Autonomy , was extradited to the US on fraud charges after a years-long battle.

Yesterday, Lynch was due to be released on bail from Santa Rita Prison in northern California after he settled for $100m (£80m) bail at a hearing in a courtroom in San Francisco.

He was detained after leaving the UK on Thursday and spent the night in prison, which is one of the largest institutions in the US.

Mr. Lynch was taken into custody after a judge declared him a «serious» flight risk requiring him to pay for armed guards and video surveillance while under house arrest and wearing an ankle tag.

District Judge Charles Breuer said Mr. Lynch's «vast fortune» of between $400 million and $450 million, along with his long battle against extradition, means he «poses a serious and substantial risk of flight.»

«There's nothing to keep him here except the charges he faces in this court,» wrote Mr. Breuer.

Mr. Lynch faces 17 charges in connection with the $11 billion sale of former software company Autonomy to Hewlett Packard in 2011. , charges that could lead to decades in prison if found guilty.

HP wrote off almost the entire cost of the acquisition in 2012, saying Lynch, who made $804 million from the deal, grossly inflated its value together with other Autonomy leaders.

Mr. Lynch denied the allegations. , claiming that HP mismanaged the company.

He was first charged in 2018 and has been fighting for extradition since 2019. Last month he lost an appeal to block his extradition after then Home Secretary Priti Patel approved his transfer to the US in early 2022. He suggested an appeal to the European Court of Human Rights.

Mr Breuer wrote that «avoiding prosecution seems almost inevitable to this court», but said that there were limitations that could be expected to ensure his presence at the trial.

Mr. Lynch will be limited to San Francisco property during the trial and will only be allowed to travel for legal meetings, court appearances and medical appointments. .

Former Autonomy CFO Stephen Chamberlain was charged along with Mr. Lynch and pleaded not guilty. In 2019, its former CFO Sushovan Hussain was sentenced to five years in prison.