City bankers face US trial

The Home Secretary this afternoon ruled that three City bankers should stand trial in the US on fraud charges.

The decision by Charles Clarke will send shock waves through the British legal system.

Mr Clarke said the men would be extradited under a controversial new law which helps US courts prosecute British subjects for acts largely carried out in this country.

It is being seen as a test case for the law which was rushed through Parliament in the wake of 9/11.

David Bermingham, Gary Mulgrew and Giles Darby, all 43, are former managing directors of NatWest Greenwich. They are accused by a Texas court of conspiring to embezzle £3.8 million from a £10.9 million investment scheme involving the failed energy giant Enron.

If found guilty they face up to 35 years in a Texas state jail, said their lawyer Mark Spragg.

A statement from Mr Clarke faxed to Mr Spragg today said: "The Secretary of State is satisfied there is no consideration which would prevent him ordering extradition of the individuals to the USA."

But the men argue that as they are British, the alleged offences occurred in Britain and most of the witnesses are based in this country, they should be tried here. Mr Spragg said US authorities "have made a request for Abu Hamza [the extremist cleric] and he has not gone. If the Hook has not gone, why should our guys go?"

When Parliament was debating the Bill which became the 2003 Extradition Act, ministers claimed it would help to fast-track terrorism cases following a treaty between London and Washington.

Defending the law in the Commons this year, Tony Blair said it was "justified and right" in a "post-September 11" context.

But the Home Office admits that of the first 43 requests from American prosecutors, 22 relate to white-collar crime charges while only three relate to terrorism. When the extradition Bill was being debated, Home Office minister Caroline Flint assured MPs that it could not be used when suspects were wanted in the US on charges which were not considered crimes in Britain.

She said: "We do not have such a range of offences involving financial

crime." The Bill does not require American authorities to present an obvious case to British courts for them before extradition is granted. The US government has yet to introduce reciprocal arrangements for British authorities.

Bermingham, of Goring, Oxfordshire, Darby, of Lower South Wraxall, Wiltshire and Mulgrew, of Hedingham in Essex, were all released on conditional bail in October following a High Court ruling that they should be extradited. It was that decision which was confirmed today by Mr Clarke.

Mr Spragg said said he would appeal against today's ruling, meaning any final decision could be delayed until next year.