The banking industry has been in the spotlight in recent years and bankers in general have developed a bad reputation. Newspapers have repeatedly reported stories relating to the PPI scandal and the credit crunch keeping UK bank's failings in people's minds constantly. The Natwest Three made up of three former Natwest employees have not just had to worry about bad press recently though as they have been spending their days locked up behind bars.
Giles Derby, David Bermingham and Gary Mulgrew were given the nickname of the Natwest Three for their illegal dealings while working for Greenwich Natwest which was a division of Natwest bank. While the three were working for Greenwich Natwest the company was dealing with Enron. Because of this relationship Greenwich Natwest also owned a stake in Swap Sub.
In 2000 Enron CFO Andrew Fastow decided to terminate the ties with Swap Sub but persuaded Enron to first pay $30m to do so. $20m should have gone to Natwest however only $1m actually did. This meant that Swap Sub made huge profits. Fastow was in contact with the Natwest Three and between them they persuaded Natwest to sell their stake in Swap Sub for just $1m.
Fastow promised the Natwest Three "an unspecified financial opportunity" for their part in the plan. This opportunity was a percentage of Natwest's former stake in Swap Sub. The Natwest Three hid their dealings with Fastow and also that they had a financial interest in Swap Sub. They did this so that Natwest would go through with the sale and they would all be able to benefit.
The three profited by roughly $7m between them however they were to be found out later on. The three went through a long battle in UK court before being extradited to the US. The three pleaded guilty of wire fraud late in 2007 to receive a shortened sentence. After each being given a 37 month prison sentence in the US, the three were transported back to the UK to serve out their sentences. They have since been released.
Giles Derby, David Bermingham and Gary Mulgrew were given the nickname of the Natwest Three for their illegal dealings while working for Greenwich Natwest which was a division of Natwest bank. While the three were working for Greenwich Natwest the company was dealing with Enron. Because of this relationship Greenwich Natwest also owned a stake in Swap Sub.
In 2000 Enron CFO Andrew Fastow decided to terminate the ties with Swap Sub but persuaded Enron to first pay $30m to do so. $20m should have gone to Natwest however only $1m actually did. This meant that Swap Sub made huge profits. Fastow was in contact with the Natwest Three and between them they persuaded Natwest to sell their stake in Swap Sub for just $1m.
Fastow promised the Natwest Three "an unspecified financial opportunity" for their part in the plan. This opportunity was a percentage of Natwest's former stake in Swap Sub. The Natwest Three hid their dealings with Fastow and also that they had a financial interest in Swap Sub. They did this so that Natwest would go through with the sale and they would all be able to benefit.
The three profited by roughly $7m between them however they were to be found out later on. The three went through a long battle in UK court before being extradited to the US. The three pleaded guilty of wire fraud late in 2007 to receive a shortened sentence. After each being given a 37 month prison sentence in the US, the three were transported back to the UK to serve out their sentences. They have since been released.
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