Hussein Cushuwang (Sushovan Hussain)

Hussein Cushuwang (Sushovan Hussain)

Biography

2019: 5 years of prison for fraud

On May 13, 2019 the former chief financial officer of Autonomy Sushovan Hussain was sentenced to 5 years of imprisonment for fraud before the conclusion of the transaction within which the company was sold to producer of the computer equipment Hewlett-Packard for $11.1 billion in 2011.

Prosecutors brought of the USA to Hussein charges on 16 points, including for fraud using electronic communications, collusion and illegal transactions with securities. He turned on in financial statements the contracts signed backdating and took other fraudulent activity that revenue of Autonomy looked high, and the company — more attractive to buyers.

The circuit judge Charles Breyer from court of San Francisco not only sentenced the former top manager of Autonomy to imprisonment, but also appointed payment of compensation in the amount of $6.1 million for benefit of HP. According to prosecutors, such award was got by the defendant for accounting frauds. Initially Hussein was fined $4 million, the Reuters agency reminds.

Prosecutors demanded a 12-year prison term for Sushovan Hussein while lawyers of the last asked no more than one year. 55-year-old Hussein will be transported under guard in prison on June 15, 2019.

The judge Charles Breyer decided that Hussein was involved in "a methodological long-term chain" of untrue reports and was sure that behind rapid growth which was shown by Autonomy it is possible to hide any fabricated digits. Besides, the ex-financial director of Autonomy used the official position to push to participation in fraud "a number of innocent people", said in court's decision.

Breyer said that Hussein has no legal grounds for submission of the appeal.

In addition to Sushovan Hussein, accused on the case of fraud of Autonomy there passes the former CEO of the company Mike Lynch. In March, 2019 the High Court of Justice of London (High Court of Justice in London) began legal procedure which should last several months. To defendants whom Hussein is among a claim for the amount of $5 billion is submitted.

Lynch claims that top management of HP planned the whole campaign which purpose was to shift responsibility to it. The former head of Autonomy nominated against HP the counter action more than to $160 million according to Lynch, sale Autonomy came to the end is unsuccessful only because of bad management from HP.^[1]

Stephen Chamberlain who was the vice president for Autonomy finance from 2005 to 2011 also appears in the indictment. He is accused of fraud too.

The U.S. Department of Justice considered 5 years of imprisonment too mild pinishment as, according to department when Hussein goes out of prison, he will receive $60 million presented to it by Mike Lynch on the occasion of the conclusion of the transaction with HP.

Mike Lynch is also accused of collusion and fraud at sale of Autonomy of Hewlett-Packard corporation

In due time Autonomy was considered as one of the most British successful IT companies, and Hewlett-Packard purchased it within expansion of the portfolio of software products. However HP it was forced to write off assets of Autonomy for the enormous amount of $8.8 billion, having said that its cost was inflated using fraudulent accounting methods. Much of assets of Autonomy a result Micro Focus companies in 2016 were sold.

Lawyers of HP said in court that Autonomy participated in systematic fraud as a result of which the company had to look more fast-growing, than actually. According to the statement HP, Autonomy company sold the equipment in a set with the software, but masked them under marketing expense.

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