Jury out in iSoft fraud trial

The jury trying three former iSoft executives accused of misleading the stock market has been sent out to consider its verdicts.

Stephen Graham, Timothy Whiston and John Whelan are accused of plotting with co-founder and former chief executive Patrick Cryne to create “huge discrepancies” in the publicly published accounts of the company.

The prosecution has told the trial at Southwark Crown Court that the men did this in 2003 to bolster the image of the company, which was taking over its rival, Torex, and trying to win business from the National Programme for IT in the NHS.

It has also claimed that they wanted to secure their own fortunes, bonuses and salaries. Cryne is not before the court for health reasons.

The other three men deny conspiracy to make misleading statements promises or forecasts, contrary to the Financial Services and Markets Act 2000 and section 1 of the Criminal Law Act.

They are said to have used a forged contract to make sure that projected revenues from a £44.3m deal with the Irish Health Executive were recognised in iSoft’s accounts as early as October 2003, even though the contract not signed until April 2005.

Yesterday, Judge Anthony Leonard QC sent the jury out to begin its deliberations more than three months after the trial began on 12 April.

He said: “It is not in dispute that those representations were made for the purpose of inducing or being reckless as to whether it may induce someone or some persons to buy or sell shares in iSoft.

“That being agreed, what you must decide is whether the prosecution made you sure that the defendant whose case you are considering conspired to make misleading statements knowing them to be misleading, false, or deceptive.”

None of the four men have any connection with iSoft today. Since the events being considered by the trial, iSoft has been sold twice and is now part of CSC’s healthcare group.