FSA starts criminal proceedings against former iSOFT directors

The Financial Services Authority (FSA) has begun criminal proceedings against four former directors of the healthcare software supplier iSOFT Group plc.

The Financial Services Authority (FSA) has begun criminal proceedings against four former directors of the healthcare software supplier iSOFT Group plc.

The directors face charges over the offence of conspiracy to make misleading statements, contrary to the Financial Services and Markets Act 2000 and the Criminal Law Act 1977.

Patrick Cryne, Stephen Graham, Timothy Whiston and John Whelan have been summonsed to appear at City of Westminster Magistrates Court on 29 January 2010.

At the time the four were directors of iSOFT, it was a major supplier to the £12.7bn National Programme for IT (NPfIT), as a subcontractor to services supplier CSC, which is not involved in the criminal proceedings and faces no accusations.

iSOFT has faced Parliamentary scrutiny and allegations of financial irregularities in its accounts. It has since been taken over by an Australian company, which continues to supply iSOFT products as part of the NPfIT.

In a separate announcement, iSOFT said today that it welcomes the FSA's decision to discontinue its investigation into the company.

Australian company IBA Group, which renamed itself iSOFT Limited, acquired the UK-based iSOFT Group plc in October 2007, after the events that were the subject matter of the FSA investigation.

iSOFT said it has "cooperated fully with the FSA throughout the investigation, which involved former management of iSOFT Group plc and had no bearing on any of the current management or employees of iSOFT Group Limited".

It added: "None of the former iSOFT Group plc directors that were investigated are employed by iSOFT Group Limited or any subsidiary of the company.

"The FSA result brings to a conclusion one of the remaining legacies of the former iSOFT, which we acquired in 2007," said Gary Cohen, iSOFT Group Limited executive chairman and CEO. "We cooperated fully with the investigation and welcome the FSA's decision."

The FSA says it has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

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