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September 30, 2004 Fraud Charge Bankers 'Will Get Fair Trial in U.S. By Anna Farley, PA News Three British bankers accused of a million-pound fraud along with two Enron executives will receive a fair trial if they are extradited to the United States, a court heard today. The trio of former NatWest investment specialists are alleged to have defrauded a subsidiary of the bank along with two senior employees from the failed United States energy giant. Although they are not being investigated by British authorities, because correspondence was sent between London, Houston and the Cayman Islands during the transaction in question, the US government wants the men to be extradited to face seven counts of wire fraud in a Texas court. There are procedures in place to ensure the case of David Bermingham, Giles Darby and Gary Mulgrew would not be prejudiced if it is held in Houston, where Enron is based, London's Bow Street Magistrates' Court was told. Prosecutor John Hardy said: "It's not just a case of having 12 people dragged off the streets of Houston having lost their jobs and savings with Enron. In any case, the defendants are not Enron executives. "The reality is a much larger group of jurors than normal is subjected to written questions and whittled down in two stages." The court had earlier heard claims from the bankers' defence counsel that the 42-year-olds have been accused of the fraud "as a means to prosecute major figures in the Enron scandal". Alun Jones QC also said his clients had contacted the Crown Prosecution Service, the Financial Services Authority, the Serious Fraud Office and Home Secretary David Blunkett, but none of them had decided to launch an investigation. The men - who deny all the US charges - have not been charged with any criminal offence in this country. The bankers are accused of hatching a plot with Andrew Fastow and Michael Kopper to persuade Greenwich NatWest to sell its stake in an investment firm to Enron at a knock-down price. NatWest was allegedly paid around one million US dollars ($571,000) for its stake in LJM Swap Sub. Enron, which was unaware of the alleged scheme, is then believed to have paid out around 20 million US dollars ($11.42 million) for the investment. The three bankers are accused of helping to cream off the balance, although most of the cash allegedly went to Kopper and Fastow. Mr Hardy said claims that the US government had delayed its application for the men to be extradited until a change in British law had come into effect did not appear to have been proved. He said: "The evidence bears out that the government of the United States is acting in good faith." Mr Hardy also alleged that the three defendants had held a meeting in Houston in February 2000 during which the future of LJM Swap Sub was discussed. If this is the case, he said: "Not only is Houston a convenient forum (for their trial), it's an extremely appropriate one." | |