Mike Lynch, the former chief executive officer of Autonomy, a software start-up that became a FTSE 100 technology powerhouse, might lose his estimated $658m fortune, following a criminal investigation by the US Department of Justice (DOJ) and a $5bn civil liability suit in the UK.
The legal proceedings in questions are concerned with the sale of Autonomy to tech giant Hewlett-Packard (HP) for some $11.7bn in 2012.
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According to the court documents seen by The Telegraph, Lynch's right hand man, Autonomy's former chief financial officer Sushovan Hussain, is charged with as many as 17 counts of securities and wire fraud.
One of the incidents brought up by HP's legal representatives included Autonomy's purchase of a van from one of its US resellers for staggering $9.6m.
The reseller subsequently gave most of the sum back to Autonomy in order to make up for a previously botched software deal in an effort to inflate the company's revenues and "make Autonomy attractive to potential purchasers," the prosecution argued.
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Through his lawyer, Hussain denied the accusations, claiming that he "defrauded no one and, as Autonomy's CFO, acted at all times with the highest standards of honesty, integrity and competence".
Although Lynch himself does not figure in the US criminal investigation, the successful prosecution of Hussain might be a decisive factor in civil proceedings brought against him by HP in the UK.
The civil case is more comprehensive than the criminal proceedings against Hussain, alleging that massive fraud surrounded Autonomy's sale to HP and may strip the 52-years-old British millionaire of $5.1bn.
Lynch also denied any accusations of fraud and countersued HP for damages to his business reputation.
