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September 16, 2006 A former Peregrine exec pleads not guilty; Extradition to U.S. created stir in Britain By Bruce V. Bigelow STAFF WRITER The former European vice president for Peregrine Systems pleaded not guilty to federal fraud and conspiracy charges in San Diego yesterday after he was extradited amid a political rumpus in the United Kingdom. Jeremy Reeve Crook, 53, became a cause celebre in London this summer because of growing popular opposition to changes in British extradition law that Parliament enacted in 2003. The changes, which were prompted by the Sept. 11 terrorist attacks, allow U.S. authorities to extradite British citizens and other residents without first establishing a preliminary case against them in British court. The changes made the extradition process lopsided because British authorities "basically just turn over" anyone wanted by the U.S. Justice Department, said Douglas McNabb, a lawyer in Washington, D.C. In contrast, British authorities seeking to extradite individuals under current U.S. extradition law have to make a case showing "probable cause" in federal court, McNabb said. Before the end of the year, the U.S. Senate is expected to vote on changes to relax the current U.S. requirements for extradition, McNabb said. But even if those revisions are approved, McNabb said, the extradition process still will be stiffer in the United States than in the United Kingdom. Crook became the subject of a U.S. extradition request after he was indicted in October 2004 with 10 others for their alleged roles in the massive accounting fraud at Peregrine Systems, the San Diego software developer now operated by Hewlett-Packard Co. Prosecutors asked Crook to return voluntarily to the United States to respond to the charges. He declined, and U.S. authorities subsequently sought an extradition order. Meanwhile, Crook's lawyers in London fueled public indignation over Britain's new extradition law and voiced their doubts about the evidence that U.S. authorities had assembled against their client. Despite the flap, British authorities ordered Crook's extradition in August. He appeared in San Diego yesterday morning before U.S. Magistrate Judge Ruben B. Brooks, who ordered Crook to post a cash bond of $250,000 and prohibited his travel beyond the Southern District of California. The judge also ordered Crook to be monitored by a global positioning satellite system and prohibited any unsupervised contacts with any current or former Peregrine employees, auditors or business associates. The indictment alleges that from March 1999 through 2002, Crook and others at Peregrine intentionally disseminated false financial reports to investors. Prosecutors contend that the alleged conspirators intended to deceive the public and investment community about Peregrine's true financial performance and condition so they could reap windfall gains from their own shares. Nine defendants, including Crook, are scheduled for trial April 3, 2007. Eight other defendants have pleaded guilty to felony charges arising out of the conspiracy. | |