Business Breaking News

The Canadian Press - ONLINE EDITION

UK fraud office launches conflict of interest probe in Autonomy case

By: Danica Kirka, The Associated Press

Tuesday, Mar. 12, 2013 at 12:52 PM | Comments: 0

LONDON - Britain's Serious Fraud Office has launched an internal inquiry to determine if there is a conflict of interest in its use of software linked to a firm it is investigating.

The SFO, the U.K. government department responsible for investigating complex fraud, acknowledged Tuesday that it had begun a probe into Hewlett-Packard's allegations that British company Autonomy had misrepresented its true value during sale negotiations with HP.

However, the fraud office also noted that it uses an Autonomy product, Introspect, for document management.

"The SFO is keen to ensure that there is now no conflict of interest or perception of such a conflict, and it is obliged as a first step to make inquiries to ensure that it can continue as the investigating body," the office said in a statement. "It is undertaking this work at present."

HP, which is based in Palo Alto, Calif, has accused Autonomy of fabricating sales to drive up its sale price. The U.S. company paid about $10 billion for Autonomy in 2011, only to write $8.8 billion off that figure last November.

Autonomy founder and former chief executive officer, Mike Lynch, has strenuously denied HP's allegations and demanded that the company provide more evidence. HP has repeatedly said that it is co-operating with legal authorities looking into the allegations.

"We confirm that we have recently been contacted by the SFO. We had written to them in December to request a meeting because we want to know the substance of HP's vague allegations and want to have a chance to respond to them," Lynch said in a statement.

"We continue to have confidence that HP's allegations are without merit and appreciate the director of the SFO's comment that 'the opening of a criminal investigation does not mean that individuals are guilty of a crime or indeed that a crime has been committed'."

The Serious Fraud Office's investigation is the latest legal fallout from a deal that has saddled Hewlett-Packard Co. with massive losses. The U.S. Justice Department began examining the matter last year, shortly after HP announced its accusation that Autonomy had inflated its value.

Rate this
This article has not yet been rated.

We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

You can also register and/or login to the site and join the conversation by leaving a comment.

Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Comments

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Comment

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.