Bankers refused leave to appeal over Enron

Former Enron Chief Executive Ken Lay was convicted of fraud and conspiracy last month. Picture / Reuters.

LONDON - Three former NatWest bankers have lost the latest round in their fight to avoid extradition to the United States over fraud charges linked to collapsed energy firm Enron.

The House of Lords turned down the bankers' appeal for permission to challenge earlier court rulings allowing them to be extradited to face trial in Houston, Texas, the House of Lords website said.

The three bankers - David Bermingham, Gary Mulgrew and Giles Darby - have argued that if they are prosecuted it should be in Britain.

Mark Spragg, their solicitor said: "Obviously we are surprised and disappointed by the decision of the Lords which seems completely out of context given the importance of the matter we were asking them to deliberate on."

"It seems that now there are no effective safeguards to prevent people being extradited to America."

They have, however, been given seven days before extradition in which to approach the European Court of Human Rights.

British business leaders and human rights campaigners have accused the US government of using a new extradition treaty, intended as a tool against terrorism, to target white-collar crime.

Under the treaty, the United States is able to demand a Briton's extradition without having to show there is a case to answer based on available evidence, although Britain has to prove its case in a US court to extradite US citizens to the United Kingdom.

The three bankers who worked for NatWest Bank, now part of Royal Bank of Scotland, are alleged to have conspired with Enron executives, including Enron's former finance director Andrew Fastow, over the sale of a stake in an Enron entity in 2000 for less than it was worth, which made them US$7.3 million ($11.8 million).

They deny the allegations.

US prosecutors want to try them in Houston, the home of Enron, where they face allegations of wire fraud.

The three had sought leave to appeal to the House of Lords. The House of Lords website gave no details of the reasons why the law lords rejected their application.

Spragg said if the ECHR grants a stay, the Home Office has agreed to abide by that pending a full hearing by the European Court .

An application by retired businessman Ian Norris, former chief executive of engineering company Morgan Crucible, to challenge his extradition to the US on charges of price-fixing has also been refused by the law lords.

- REUTERS