THE former finance director of the computer software group AIT was facing a possible jail sentence yesterday after being found guilty of one count of misleading shareholders.

Gareth Bailey, 36, formerly chief financial officer of AIT, was convicted of one count of using bogus contracts to boost profit forecasts. He was cleared of another count.

The crime carries a maximum sentence of seven years. He was ordered to surrender his passport pending sentencing on October 7.

The jury unanimously found him guilty of recklessly making a statement, promise or forecast that was misleading, false or deceptive in a material particular contrary to the Financial Services and Markets Act.

A former colleague, Alistair Rowley, 43, former sales director of AIT, was cleared of all charges in Southwark Crown Court yesterday.

The jury asked for more time to consider their verdict in the case of Carl Rigby, 43, the former chairman and chief executive at AIT.

The high-profile trial was the first contested criminal case prosecuted by the Financial Services Authority since adopting new powers under the act. Until now, it had preferred to bring such cases through its enforcement arm, where the burden of proof is milder, but the maximum penalty is a fine.

During the three-month trial, the court heard how in 2002 the executives allegedly used bogus deals to claim that they would meet profits targets.

After the contracts fell through and the company issued two profits warnings, its shares collapsed, wiping £90 million from the value of the company. William Boyce QC, for the prosecution, said: “People lost money. This was not a victimless crime.”

The FSA said: “As there are matters still under consideration, we can make no further statement in relation to this case.”