THREE British bankers linked to the Enron scandal would not necessarily halt their extradition to the United States if they succeeded in forcing British authorities to investigate them, a court heard yesterday.

Gary Mulgrew, Giles Darby and David Bermingham say that a decision by the Home Secretary to approve their extradition infringes their human rights and demand that the High Court compel the Serious Fraud Office (SFO) to investigate allegations against them.

The men are accused by the US Department of Justice of conspiring to defraud NatWest of more than $7 million (£4 million) over the sale of an offshore entity to Enron. American prosecutors claim that the bankers persuaded NatWest to sell its stake in the partnership for far less than it was worth.

The men deny the charges.

Hugo Keith, representing the Attorney-General, said that the extradition could be halted if charges were laid against the men, but that the court could order an investigation only in exceptional circumstances.

Mr Keith said that the three men were demanding an investigation to trigger “the possibility” of a prosecution and prevent a legal extradition.

If the men win, it would be the first time that a court has directed prosecutors to launch an investigation.

Ian Burnett, QC, for the SFO, said that the public interest was served by allowing one court to deal with a cross-border crime, because two alleged co-conspirators are in the United States. American prosecutors allege that the men conspired with Andrew Fastow, Enron’s former chief financial officer, and Michael Kopper, his right-hand man.

However, lawyers for the three have cited a document by the Financial Services Authority noting that Royal Bank of Scotland. which took over NatWest, had recalculated its stake and emerged with a figure similar to the original.

Alun Jones, QC, for the three bankers, has argued that they should be prosecuted in the UK because they are Britons and the alleged victim was a British company.

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