Retrial of iSoft execs collapses

  • 9 July 2013
Retrial of iSoft execs collapses
Southwark Crown Court

The retrial of three former iSoft directors accused of forging a multi-million pound NHS contract has collapsed.

Stephen Graham, Timothy Whiston and John Whelan have been standing trial since April at Southwark Crown Court after their first trial ended because the jury was unable to reach a verdict last August.

Patrick Cryne, a co-founder and former chief executive of the company who faces the same charges, is not before the court due to ill health.

All of the men have been accused of making false statements to the markets about their firm in order to hoodwink investors.

But the latest three-month trial collapsed after Judge Anthony Leonard QC discharged the jury for reasons which cannot be reported.

Prosecutors are considering whether to ask for a third trial and will announce their decision later this month.

The drama comes after more than three years of legal wrangling over alleged wrongdoing at the software firm, dating from the early years of the National Programme for IT in the NHS.

The case centres on claims that the directors deliberately lied about winning a major contract to supply information systems to Irish Hospital Information Systems in October 2003.

Prosecutors, directed by the Financial Conduct Authority, say the deal was not signed until 30 April 2005, but the firm deliberately misled the stock market in order to support its position was it tried to win NPfIT business.

All four men deny any wrongdoing. The latest trial collapsed as barristers were preparing to make their closing statements.

Whiston, Whelan, and Graham are all freed on bail and will return to court in the week starting 22 July to see if they will face a third trial.

Since the events being considered by the trial, iSoft has been sold twice and is now part of CSC’s healthcare group.

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