Former CFO Faces Life In Prison In HP-Autonomy Fraud Case

SAN FRANCISCO (CBS SF) — The former chief financial officer of Autonomy Corp. has been convicted of one count of conspiracy, fourteen counts of wire fraud and one count of securities fraud by a federal jury in case that cost Hewlett-Packard billions of dollars.

The verdict convicting Sushovan Hussain came at the end of a two-month trial in San Francisco federal court.

When he is sentenced by U.S. District Court Judge Charles R. Breyer, Hussain could face a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution, for the conspiracy count and each of the wire fraud counts.

Hussain faces a maximum sentence of 25 years in prison, and a fine of $250,000, plus restitution, for the securities fraud count.

“The jury verdict affirms that corporate criminals who cook their company’s books to the detriment of victims in the United States, and specifically this district, will be held to account in our courts,” said Acting United States Attorney Alex G. Tse.

From 2009 to 2011, Tse said, Hussain misused his special skills in accounting to falsely inflate Autonomy’s revenues. He then touted Autonomy’s false and misleading financial statements to senior executives at Hewlett-Packard Company and eventually defrauded HP of over $11.7 billion.

“Corporate citizens and their shareholders, just like all citizens, deserve the full protection of our criminal laws,” Tse said.

“Such egregious dishonesty in business practice violates the trust of our citizens and will not be tolerated by the FBI and our law enforcement partners,” FBI San Francisco Division Special Agent in Charge John F. Bennett added in a prepared statement.

In 2011, Hewlett-Packard Company acquired Autonomy, the former software technology company, for about $11.7 billion. The evidence at trial demonstrated that for more than two years prior to the sale the 54-year-old Hussain falsely inflated Autonomy’s revenues to make it appear Autonomy was growing when it really was not.

Hussain’s next court appearance was scheduled for Friday at which time the court will consider conditions for the defendant’s continued release and a schedule for sentencing.

Hussain is a a citizen and resident of the United Kingdom.

 

Article From:- http://sanfrancisco.cbslocal.com

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