Risk & Compliance

British Trio Face Enron Charges in U.S.

The bankers had argued that since they are British citizens accused of crimes against a British bank, they should be tried in the U.K.
Dave CookFebruary 21, 2006


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Three British investment bankers face extradition to the United States and trial on Enron-related charges, reported the Financial Times.

The trio argued unsuccessfully before their country’s High Court that since they are British citizens accused of crimes against a British bank, they should be tried in U.K., the newspaper added. Reportedly, they are concerned about getting a fair trial in the United States.

David Bermingham, Gary Mulgrew, and Giles Darby allegedly defrauded their former employer, Greenwich NatWest, the capital markets division of National Westminster Bank, according to the FT. Reportedly, U.S. prosecutors have charged that they convinced the bank to invest in an off-balance-sheet partnership controlled by former Enron CFO Andrew Fastow and a former senior aide, Michael Kopper.

According to the FT, the British bankers later persuaded Greenwich NatWest to sell its stake in the partnership for $1 million, far less than it was worth. London’s Daily Telegraph reported that the excess value was $20 million, of which $12 million was shared by Fastow and Kopper.

Meanwhile, the trial of former Enron executives Kenneth Lay and Jeffrey Skilling will resume today with further testimony from onetime Enron accountant Terry West. Former corporate secretary Paula Rieker will be next on the witness stand, according to the Houston Chronicle.