Extradition legal precedents - Enron NatWest Three

The Extradition Act 2003, where no prima facie evidence needs to be presented to a Uk Court, for extradition to a Part 2 Category 2 country i.e. one with an allegedly similar legal system to that of the United Kingdom, has some other pending cases, where extradition is being sought by the United States authorities.

We have already mentioned the case of Babar Ahmad - you can read the Bow Street Magistrates' Court judgement here (.pdf)

There is another pending case which may also set a legal precedent, which could affect Gary McKinnon's case.

This is the case of the so called Enron NatWest Three.

According to The Times

June 22, 2004

Accused NatWest bankers fight extradition to the US
From James Doran, Wall Street Correspondent

THREE former top bankers accused of stealing more than $7 million (£3.8 million) from NatWest in a scheme that helped to bring about the collapse of Enron vowed last night to fight attempts to extradite them to America.

David Bermingham, 41, Giles Darby, 42, and Gary Mulgrew, 42, appeared at Bow Street Magistrates’ Court, London, to hear the US Government’s extradition case.

The three were managing directors with Greenwich NatWest, a subsidiary of the bank that is now part of Royal Bank of Scotland, and allegedly had close ties to Andrew Fastow, the former Enron finance chief about to begin a ten-year prison sentence for his part in the energy firm’s bankruptcy.

It is alleged that the three men defrauded the bank of $7.3 million when they sold a company, based in the Cayman Islands. They told NatWest that the company, known as LJM, was worth $1 million and sold it to an offshore entity called LJM Swap Sub, which was controlled by Michael Kopper, a former colleague of Mr Fastow. Mr Kopper sold the company to Enron for $30 million.

The three bankers allegedly took $2.3 million each while Mr Kopper and Mr Fastow received $12.3 million.

John Hardy, for the US Government, said: “The Government’s allegations in brief is that the three defendants manipulated the sale price in respect to Greenwich NatWest’s interests in Swap Sub in such a way to prevent Greenwich NatWest receiving its dues and such a way that they pocketed to the tune of $2.3 million each.”

All three men deny any wrongdoing.

Separately, Kenneth Lay, former chairman of Enron, last night asked for a meeting with government prosecutors as the prospect of fraud charges against him appeared to have become more likely.

Michael Ramsey, Mr Lay’s lawyer, remained adamant that his client would not be charged with any crime, despite mounting speculation that he will be indicted."

The Daily Mail reports that

"Liberty to intervene in NatWest Three case
Ruth Sunderland, Daily Mail,
27 May 2005

HUMAN rights organisation Liberty is to intervene in the case of the NatWest Three, a trio of former bankers facing extradition to the US on multi-million pound fraud charges relating to collapsed energy giant Enron.

David Bermingham, Gary Mulgrew and Giles Darby deny all charges. They are appealing against a decision by Home Secretary Charles Clarke this week to uphold a High Court ruling in October that they could be shipped to the US under controversial new legislation intended for terrorists.

It scraps the need for the US to present prima facie evidence against the accused.

Caoilfhionn Gallagher, one of the Liberty lawyers acting on the case, said: 'This is a human rights issue. It is an example of how three men are going to be taken away from their families and brought to the US with no consideration of whether the Americans have the right to do this.'

Royal Bank of Scotland, which now owns NatWest, said it was not aware of all the facts and evidence and reserved the right to take legal action.

Bermingham said he was resisting extradition 'because I would have to spend two years in a federal penitentiary and would have to spend around $2m to prove my innocence. Why the hell should I have to do that?'

News of Liberty's intervention came as the US was criticised by Amnesty International for its treatment of prisoners."