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NatWest Three offer guilty plea | |
(about 12 hours later) | |
Three British bankers extradited to the US on fraud charges connected to former US energy giant Enron have pleaded guilty to one count of wire fraud. | |
David Bermingham, 44, Gary Mulgrew, 45, and Giles Darby, 44, the so-called NatWest Three, were in a Texas court. | |
Until now the three had protested their innocence to all seven fraud charges. | |
Prosecutors say that in 2000 the three men advised former employer, NatWest, to sell part of a firm owned by Enron for less than it was worth. | |
It is claimed that the three then left the bank and bought a stake in the Enron-owned company, before selling it on at a significantly higher price and making a huge profit. | |
They were arrested in the UK in 2004. | |
High-profile extradition | |
The case hit the headlines last year as the three men fought against their extradition to the US. | |
They were extradited in July 2006 under a new fast-track system agreed by the UK government and face up to 35 years in prison if found guilty on all charges. | |
All three have been on bail since shortly after their extradition but were barred from returning to the UK before their trial. | |
They are now due to be sentenced on 22 February. | |
Enron, once the seventh largest company in the US, collapsed in 2001 with debts of $31.8bn (£18.3bn) after it was revealed that it had fraudulently hidden vast losses from investors. | |
Wire fraud is a US legal concept that allows for higher penalties against any fraudulent activity, if the activity in question involves electronic communications of any sort. | |
It is often used as a means for a federal prosecution of what would otherwise have been a matter for a state court. |