Former iSoft bosses on conspiracy charge

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The case is one of the City watchdog's largest since it was given the power to make criminal prosecutions, and the four directors could face maximum jail sentences of seven years.

The four, who will appear in court towards the end of this month, are former chairman and founder Patrick Cryne, former chief executive Timothy Whiston, former commercial director Steve Graham and former finance director John Whelan.

Digby Jones, former CBI director-general and trade minister, who was a non-executive director of iSoft when it admitted irregularities in its 2004 and 2005 accounts, is believed to have been interviewed by the FSA. He has not been charged.

ISoft has been investigated several times by various bodies. The latest inquiry by the FSA began in August 2006 following a major profits warning and the departure of the four directors from the company.

New management said problems in the accounts lay in revenues being booked too early. Accenture, ISoft's original partner in the NHS contract, also blamed it for the project falling seriously behind schedule.