EmailCryne has been summoned to appear before a magistrate's court in London later this month along with iSoft co-founder Steve Graham, one-time chief executive Tim Whiston and former finance director John Whelan, reports The Guardian.
Cryne responded with a statement which said: "Since the FSA commenced its investigation into the affairs of iSoft in July 2006 it has had my full and complete cooperation. I am surprised and disappointed at the position arrived at by the FSA. I am, however, absolutely satisfied that in due course my position will be completely vindicated." Byrne & Partners, the law firm acting for Graham, declined to comment.
Together with Graham and Roger Dickens, who died in 2006, Cryne led a management buyout of iSoft from KPMG in 1998, floating the business on the stock exchange two years later. The business appeared to be a tremendous success — notably winning an important contract to supply software to the government's £12.7bn NHS National Programme for IT (NPfIT). But the success story came to an abrupt halt in 2006 when the company issued a huge profit warning and restated revenue and profits for previous years.
The software firm was forced to restate its profits for the financial years 2004 and 2005 because of a radical change in its accounting practices. This meant that operating profit for 2005 was reduced from £72m to zero and revenues were revised from £262m to £190m.
The new figures sparked a share sell-off, wiping 90% off the value of the company in 2006 before it was sold to Australian rival IBA Health, which has since adopted the iSoft name.
The company remains a major software supplier NPfIT. A final version of its flagship Lorenzo software package, which had been promised years ago, is still in development.
iSoft Group welcomed the FSA's decision to end its inquiry into the firm. The company stressed that it did not employ any of the former iSoft directors that were investigated by the FSA.
Gary Cohen, iSoft executive chairman and chief executive, said: "The FSA result brings to a conclusion one of the remaining legacies of the former iSoft which we acquired in 2007."
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