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'Natwest Three' sentenced to 37 months in jail

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Published Date: 22 February 2008
THE NatWest Three bankers were each sentenced to 37 months in jail today after pleading guilty to an Enron-related fraud in a deal with US prosecutors.
David Bermingham, Gary Mulgrew and Giles Darby, all 45, were extradited to the US under a controversial treaty 20 months ago and pleaded guilty at the US district court in Houston, Texas, in November.

Judge Ewing Werlein Jr ordered the trio to all serve 37 months behind bars and pay back a total of $7.3 million (£3.5 million) to the Royal Bank of Scotland, NatWest's owner, when he sentenced them at the US district court in Houston, Texas, today.

In return for the guilty pleas to one count of wire fraud, US prosecutors asked for the six other counts to be dismissed and supported the trio's bid to "serve some of the sentence" in the UK.

The three men admitted a conflict of interest and breach of "fiduciary duty" by not informing NatWest that they were considering investing in a company owned by collapsed US energy giant Enron.

They left the bank and bought a stake in the company, Swap Sub, which they then sold on for a huge profit, making around $7.3 million (£3.5 million) themselves.

Bermingham, of Goring, south Oxfordshire, Glasgow-born Mulgrew, and Darby, of Lower Wraxall, Wiltshire, have all been described as "ordinary family men" and are known to be keen to return home to the UK as soon as possible.

Each defendant addressed the court and apologised for their actions during the hour-long sentencing.

Mulgrew said: "First of all, I would like to apologise unreservedly for my actions."

He said they "lacked integrity" and apologised to those who had been "hurt" by his actions.

Bermingham said: "My conduct in this matter fell well below the standards expected."

He said he wanted to apologise to his wife and children, and to the people who suffered from the consequences of his actions.

Darby said: "Clearly a long time has passed since this offence. 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."

He said the consequences of his actions had been "far-reaching in terms of our careers and our reputations".

He said the consequences for himself, his family, friends and former colleagues were "difficult to bear".

He added: "I'm fully prepared to accept the consequences of my actions."

All three men wish to return to the UK and a decision on whether they will be able to transfer from a US jail to a prison in the UK will be made by the Bureau of Prisons at a later date.

Page 1 of 1

  • Last Updated: 22 February 2008 5:29 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

jerrymanders,

Scam of the century! 22/02/2008 17:47:50
£7.3M? Is that all? Aye, right.

"I'm fully prepared to accept the consequences of my actions."

No wonder. Where's the rest?
2

jerrymanders,

Not a chance. 22/02/2008 17:49:42
Oh, and it was dollars not pounds! They are laughing all the way to the bank.
3

The Strategist,

22/02/2008 17:55:40
I just love it. Before they were extradited half the City of London was complaining bitterly and protesting the innocence of these three.

I'm quite sure this is the tip of the iceberg and yet compared with the US authorities we are a bunch of wimps when it comes to both investigating and prosecuting this sort of crime.

4

OscarMacApfel,

Dumfries 22/02/2008 18:59:53
'Mulgrew, a Glaswegian former nightclub bouncer, also dabbled in the movie world by investing in Trieste Film Partners – a film leasing entity set up by the entertainment entrepreneur Patrick McKenna's Ingenious Media group. But the world of property proved more of a draw for the Scot, according to documents obtained by the Guardian. In the years following his controversial dealings with Enron, he entered correspondence about a number of deals including purchasing an Islington gastropub, a Highlands hotel, and Hewan Wood, a beauty spot near Roslin on the outskirts of Edinburgh.

Mulgrew, 46, snapped up a flat in Glasgow's affluent Hyndland suburb for £120,000 in April 2001 – eight months after receiving the proceeds of the Cayman deal. A month earlier, in March 2001, Mulgrew paid £245,000 for a new apartment on Edinburgh's Holyrood Road, beside the newly built Scottish Parliament. He signed agreements to rent this property out to his mother Trish Godman, who is a Labour MSP and the parliament's deputy presiding officer for £1,000 per month. She appears not to have used the flat, however, as over this period she was claiming regular hotel expenses in Edinburgh. She declined to discuss this with the Guardian.

This flat, which is on the site of a former Scottish & Newcastle brewery beside the Queen's official residence, Holyrood House, does not appear to have appreciated much in value. Godman and her husband Norman Godman, a former Labour MP for Greenock, bought it from Mulgrew for £250,000 in November 2006. She has not had to record it in the parliament's register of members' interests because it is a personal residence. She has not claimed hotel expenses since buying the flat.'


Surely this apartment was purchased under the proceeds of crime and should be grabbed by the authorities?

http://www.guardian.co.uk/business/2008/feb/21/2

5

BK,

Cyberspace 22/02/2008 19:01:10
At least they got their deserved comeuppance in the USA. Corporate fraud, far from being prosecuted seems to be actively encouraged in the country by the New Labour government.
6

democrate,

central Scotland 22/02/2008 22:32:58
Why should these criminals serve their sentences in the uk at the expense of the British taxpayer? No reason whatsoever, except maybe strings being pulled.........
7

Tris,

22/02/2008 23:00:22
Interesting to see cheats getting some form of punishment for a change.

Our lot just suspend them from their jobs for 10 days, likely on full pay.

At least Cameron had the decency to throw Conman out of the Tory Party. I wonder if that will happen to Labour MPs.

Rumour has it that Mr Martin has been less than truthful about flights...

But it's all gone a bit quiet on that front now, and I still haven't had a reply to my email to the Wintertons asking how they justify their scam.

Don't suppose an oink like me ever will get one from upper crusts like them!

Anyway, well done the Americans this time.
8

democrate,

central Scotland 22/02/2008 23:14:35
7 - behave yourself! you cannot start throwing out the cheats in the Labour Party; there wouldn't be enough of them left then to fill all those seats they deserve at Holyrood and both Houses in Westminster let alone on the EC or all the other quangos and the like.

 

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