'Natwest Three' sentenced to 37 months in jail

Published on Friday 22 February 2008 17:09

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.