Mike Lynch 'spun fabulous tale' about Autonomy, fraud trial told

Mike Lynch, the co-founder of one of Britain’s most successful technology companies, oversaw a “multi-year, multi-layered fraud” that led Hewlett-Packard to pay $11 billion for his software company Autonomy, a jury was told on Monday as his criminal trial opened in California.

Lynch, 58, and Stephen Chamberlain, Autonomy’s former vice-president of finance, both face 16 felony charges of fraud and conspiracy in a trial expected to run until late May or June and include testimony from more than 40 witnesses. Both deny the claims.

Adam Reeves, for the prosecution, told the jury that Lynch “spun a fabulous tale” about the company’s finances adding: “HP ate it up — they thought this kind of software company is exactly what they needed.”

Lynch — a former UK