British entrepreneur Mike Lynch took the stand on Thursday in a San Francisco federal courthouse as a key witness in his own criminal fraud trial, defending his role at Autonomy, the tech firm he co-founded and then sold.
While the government has painted the matter as a clear case of fraud, Lynch in his testimony attempted to highlight more complexity, stating that like any business, Autonomy was “not perfect”.
In his testimony, Lynch sought to demonstrate he was not solely responsible for the business decisions that led to the fraud allegations he now faces. US authorities have charged Lynch with 16 counts of wire fraud, securities fraud and conspiracy relating to his company’s acquisition deal with Hewlett-Packard in 2011. He was extradited from the UK in May 2023.
Lynch is accused of artificially inflating the software firm’s sales; misleading auditors, analysts and regulators; and intimidating people who raised concerns. In his testimony, the executive said his job involved delegating many tasks to employees, and that his background upon founding the company was more technical in nature than business-focused.
“The reality of life is that it’s nuanced, and it is messy,” he said. “[In this trial] we are peering through the door and seeing the sausage being made. One thing to bear in mind is if you take the microscope into a spotless kitchen, you will always find bacteria. And I don’t think Autonomy is any different.”
Lynch also stated that he did not personally know or did not remember meeting a number of the witnesses called to testify about the Autonomy deal. Prosecutors have called upwards of 30 witnesses since the trial began in March.
If convicted, Lynch faces up to 25 years in prison. He has pleaded not guilty.
More details soon …