A London solicitor has this week issued judicial review proceedings against the Serious Fraud Office (SFO) on behalf of three former NatWest bankers facing extradition to the US, in a bid to force the SFO to investigate the matter itself rather than leave it to the US courts.

Mark Spragg, partner at Jeffrey Green Russell, has issued the unusual proceedings on behalf of David Bermingham, Gary Mulgrew and Giles Darby, who are accused of defrauding NatWest out of £6 million in relation to the sale of an asset to Enron. They deny the allegations.


The bankers are challenging the basis of the SFO's decision not to investigate, including the assertion that the US investigation is already well progressed and there is a strong nexus to the US.



SFO: investigating challenge

Mr Bermingham told the Gazette that if they are extradited to the US, the tough sentences imposed on defendants who refuse to plea bargain mean the bankers would be under 'enormous' pressure to plead guilty and would be 'lunatics' not to do so.


He added that as foreign nationals they would not be granted bail, and would be forced to organise their defence - with all the evidence based in London - from prison. Defence costs would not be refunded even if they were acquitted.


Mr Bermingham said: 'It is an Orwellian situation where a foreign government can put in a report for extradition without any evidence, and the reason that no prosecution can take place here instead is that the government has not been provided with any evidence.'


An SFO spokesman said it would be inappropriate to comment now court proceedings have been issued.