Former Uk NatWest Bankers Face US Courts
LONDON – Three former UK-based bankers who worked for NatWest will now have to go to the US to face Enron-related fraud charges after their court battle fighting extradition to the US was lost in late June. The three – David Bermingham, Gary Mulgrew and Giles Darby – argued that if they were to be prosecuted for the transactions they undertook, it should be in the UK where they live and where they were based when they completed the deals.
Lawyers for the men say that under the US legal system they could face up to 35 years in prison if they are found guilty of the seven counts of 'wire fraud' they are charged with. It is estimated that the court case will cost each of them $2 million in legal fees and associated expenses.
The three bankers worked for NatWest Bank, which is now part of Royal Bank of Scotland. They are alleged to have conspired with Enron executives over the sale of a stake in an Enron entity in 2000 for less than it was worth, which earned them $7.3 million.
The extradition falls under a new, controversial treaty in force since January 2004, which was designed to speed up the extradition of terror suspects to the US. However, the US has not signed its side of the treaty, so the UK does not have the same power to extradite individuals from the US. There are several other executives in the UK fighting extradition as well.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
FRTB revamp won’t restore models to past glory, risk managers say
US-inspired reform only expected to lead to small boost in adoption, with limited desks on IMA
Regulators must think bigger to tackle tech risks, says Hong Kong SFC
Leung warns AI adoption and recent cyber scares show new threats require global co-operation
Time to let some air out of the banking system?
Watchdogs worry about lowering standards, but policy-makers eye growth – they face a difficult dilemma
Competitiveness mandate for Esma faces uphill battle
European Parliament offers last chance to force Esma to take more nuanced approach
Europe expects FRTB to bite on XVA hedges
Risk Benchmarking: One-third of European dealers fear new market risk rules will have major effect on hedges
Burning ambition: will Europe join the US in setting fire to the rules?
As the US dismantles post-crisis regulations, some think Europe will follow in a bid to boost economic growth
Can US perpetual futures solve their identity crisis?
Market could fall under four different regulatory categories, with sharply diverging outcomes
Banks want AML data upgrade to complement US regulatory reform
FinCEN’s proposed overhaul sparks debate on whether it will lead to smarter or weaker supervision