USA: Federal Judge denies Natwest Three's return to Britain each must post a bond of $1 million to remain free in the United States while awaiting trial

Three former British bankers charged in an alleged Enron-related swindle can not go home to await trial and must each post bond of $1 million to remain free in the United States, a U.S. judge ruled on Friday (July 21). David Bermingham, 43, Giles Darby, 44, and Gary Mulgrew, 43, had sought an unprecedented release back to Britain, arguing that they needed to return home to keep their jobs, support their families and prepare their defence. But Magistrate Judge Stephen Smith said that, although he sympathised with some of their concerns, he could not allow them outside the jurisdiction of U.S. courts because it would risk another lengthy extradition proceeding. Bermingham's lawyer, Dan Cogdell, said they could appeal to the next higher court but had not decided whether to do so. The three men, who fought extradition for nine months, are accused of conspiring with rogue Enron executives in 2000 to defraud National Westminster Bank of $19 million. They allegedly divided more than $7 million among themselves. After losing their last extradition appeal in Britain, they surrendered in London last week and were brought to Texas to face the charges. They pleaded not guilty and were freed under Cogdell's supervision pending Friday's hearing. The judge imposed a number of other conditions, including requiring that they stay in the Houston area and seek permission to travel within the United States. They also must submit to electronic monitoring. Extradition of the three set off a political furor in Britain, where critics complained that treaty arrangements and laws unduly favor the United States. Prime Minister Tony Blair defended the arrangements. Mulgrew said, "I feel that my sentence has begun today." Darby let his lawyer speak for him. Attorney Michael Sommers said, "He's obviously very disappointed. ... And he's concerned how he'll support himself, support his defense and his effort to vindicate his name." The men remained free in Cogdell's custody for now but must post cash security -- $250,000 for Bermingham and Darby, $100,000 for Mulgrew, who is not as well-heeled -- by July 31 or go to jail to await trial. They must post an additional security -- $250,000 more for Bermingham and Darby, $100,000 more for Mulgrew -- by Oct. 21. The trial is now set for Sept. 11, but delay of a year to 18 months is expected. Enron, the world's largest energy trader before its December 2001 collapse, filed for Chapter 11 protection from creditors after investors learned it used off-balance sheet deals to hide billions of dollars of debt. The meltdown, the second largest bankruptcy in U.S. history, sparked a series of shareholder lawsuits and criminal charges against the company and management.

ITN Source | July 22, 2006

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