Four ex-iSOFT directors face criminal probe

THE City watchdog has launched criminal proceedings against four former bosses of iSOFT, the NHS software provider – including the owner of Barnsley Football Club.

Founder former chairman Patrick Cryne – current owner of Championship football club Barnsley – former chief operating officer Stephen Graham, former chief executive Tim Whiston and finance director John Whelan, have all been summonsed to appear in court on January 29.

The Financial Services Authority said in a brief statement said: “The FSA confirms that it has commenced criminal proceedings against four former directors of iSOFT Group Plc for the offence of conspiracy to make misleading statements, contrary to section 397 (1)(a) and (2) of the Financial Services and Markets Act 2000 and section 1 of the Criminal Law Act 1977.”

The four have been summonsed to appear at City of Westminster Magistrates Court on January 29.

The action follows a probe into the rise and fall of the former Stock Market darling.

Founded in Manchester in 1998 after a £12m private equity-backed buyout from KPMG Consulting, iSOFT floated on the Stock Market two years later.

The value of the business rocketed to nearly £1bn as it won large parts of a multi-billion pound Government contract to improve NHS IT systems.

The firm moved to opulent headquarters near Manchester Airport in January 2005but 15 months later was plunged into crisis amid a scandal over alleged accounting irregularities and contract delays.

The Manchester HQ was axed in 2006 during a massive cost cutting exercise implemented by former BAE Systems boss John Weston, who was chairman at the time.

It was eventually bought by Australian firm IBA Healthcare in 2007.

Mr Cryne, from Glossop, made over £40m from selling shares in iSOFT. He left the business in 2006 before the troubles at the company came to light.