International   

3 bankers jailed for Enron-linked fraud

New York: An American judge has sentenced the so-called “NatWest Three” to 37 months’ jail each after expressing admiration for the support commanded by the disgraced British bankers who stole $7.3 million in an Enron-related fraud.

David Bermingham, Gary Mulgrew and Giles Darby, whose treatment prompted a political row over Britain’s extradition policy, asked to serve their time at Allenwood prison in Pennsylvania — a complex 360 km north of Washington.

Rather than remanding them directly into custody, Judge Ewing Werlein gave them permission to surrender voluntarily to prison.

At Houston’s federal courthouse, judge Werlein said he was “impressed by the large amount of support each of you have been given by people who see your favourable qualities”.

But he told the trio that they must pay back “every dollar or, over there, every pound” they had stolen from their former employer NatWest, which is now part of Royal Bank of Scotland.

“I wish you well in your future endeavours and I’m confident we will never see you before a court again,” said judge Werlein.

Under a plea agreement, Bermingham, Mulgrew and Darby admitted one count of fraud related to a transaction concocted in 2000 with top Enron executives who have since been jailed for corruption.

In the fraudulent deal, the trio recommended that NatWest offload a stake in an Enron-related venture in the Cayman Islands for a knockdown price of $1 million.

Unbeknown to NatWest, they had a personal interest in the buyer of the investment which sold it on for $20 million, with the profits shared between the conspirators.

Each of the three men apologised to the court. Bermingham (45), expressed regret for the pain he had caused his wife and family: “My conduct in this matter fell well below the standards expected.”

Darby (45), said the affair had “far-reaching” implications on the trio’s career and reputations: “At the time, I didn’t realise the implications of what was happening. I failed to take the right course of action and I deeply regret that.”

Glasgow-born Mulgrew (46), accepted that his actions “lacked integrity” and expressed regret to all those who had been affected: “I would like to apologise unreservedly for my actions.” — © Guardian Newspapers Limited, 2008

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Cuban lawmakers to name President
No basis for further sanctions, says Iran
Protect civilians: TULF
Party gives up Islamic state goal
Pact on Madhesh state
Art, not commerce looks set to be cherished at Oscars
3 bankers jailed for Enron-linked fraud

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu