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Autonomy CFO Sushovan Hussain to be arraigned in US court today

Hussain expected to plead 'not guilty' to charges of fraud

Sushovan Hussain, the former chief financial officer of British software company Autonomy, will be arraigned before a US federal court in San Francisco, California today, charged with making false and misleading statements over the financial health of the software company prior to its $11bn acquisition by Hewlett-Packard in November 2011.

Hussain will have the charges read out and asked whether he pleads ‘guilty' or ‘not guilty'. Hussain has denied the charges and voluntarily travelled to the US to face indictment, rather than go through the process of extradition.

It follows his indictment on 10 November, which alleged that Hussain was behind an elaborate fraud intended to deceive investors, auditors and, ultimately, potential buyers of the company.

The prosecution is the culmination of a four-year investigation by the US Department of Justice. The UK's Serious Fraud Office, in contrast, has dropped its investigation into Autonomy, Hussain and Autonomy founder and CEO Mike Lynch.

If found guilty, Hussain could be sentenced to up to 20 years in prison and fined several million dollars.

Hewlett-Packard has since split in two, with Hewlett-Packard Enterprise (HPE), the enterprise computing segment, taking on the case. It has taken an aggressive stance against Lynch and Hussain. Lynch has denied HPE's claims, and has vowed to sue the company for damages.

In an official statement, HPE described the move as a significant step forward. "As we've previously said, HPE is pleased with the news that a federal Grand Jury returned an indictment in this matter. This is a significant step toward holding Mr Hussain accountable for his alleged role in defrauding HP, and we look forward to him answering for his actions in court."

However, Hussain has claimed that HPE is pursuing him and Autonomy founder and Lynch to cover-up their own incompetence in wildly over-paying for the company in the first place.

Responding to the prosecution in November, his lawyer, speaking on his behalf, said: "Sushovan Hussain is innocent of wrongdoing. He defrauded no one and, as Autonomy's CFO, acted at all times with the highest standards of honesty, integrity and competence. He will be acquitted at trial."

He went on to accuse HP of going out of its way to avoid paying US taxes when it structured the acquisition deal. "Hussain is a UK citizen who properly applied UK accounting rules for a UK company. This issue does not belong in a US criminal court.

"It's especially galling that the Justice Department is pursuing this case on behalf of HP, a company that went out of its way to employ a web of offshore shell companies to acquire Autonomy with the specific intent of avoiding payment of US taxes."

Autonomy CFO Sushovan Hussain to be arraigned in US court today

Hussain expected to plead 'not guilty' to charges of fraud

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