Department of Justice files first criminal charges in connection with Enron case

June 28, 2002 – The Justice Department on Thursday filed charges of wire fraud against three former bankers in connection with the Enron investigation.

The charges are the first criminal charges to be filed in the probe, according to CBS MarketWatch.

The Justice Department’s Enron Task Force charges three former officers of National Westminster Bank of England with siphoning $7.3 million of the bank’s money to secretly invest Southampton LP, one of Enron’s limited partnerships.

Gary Mulgrew, Giles Darby and David John Bermingham were charged with wire fraud.

All three were employed by the finance group of Greenwich NatWest, a division of NatWest with offices in Greenwich, Conn., and London.

In the complaint, the three men had discussed a connection with former CFO Andrew Fastow. Fastow has not been charged with anything.

The Justice Department complaint alleges that the method they are accusing the bankers of carrying out was used by several others to quickly inflate available cash for the bankrupt energy giant.

Enron’s former auditor, Arthur Andersen LLP, was recently convicted of obstructing justice for shredding Enron audit documents.

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