Bell Yard Press Coverage/Releases

Peregrine boss to be extradited

Jeremy Crook

A former executive at US technology firm Peregrine Systems is facing extradition to the US on fraud charges.

Jeremy Crook, 53, is facing charges in the US accused of defrauding Peregrine shareholders for several years.

Mr Crook had hoped to travel to the US so as to hand himself over to American authorities. However, his passport was confiscated at a London court hearing.

The case follows the extradition of the so-called NatWest Three, which drew criticism from UK business leaders.

Employers' groups say the US is exploiting laws aimed at tackling terrorism in order to target white-collar crime.

In June, several groups signed a letter to the Home Secretary attacking the laws, charging that required less proof of wrongdoing from US officials than that needed from their UK counterparts.

'Inbuilt flaws'

Mr Crook has also voiced his opposition to the act, saying that he hoped his case would "highlight the inbuilt flaws" in the treaty - which was signed soon after the September 11 attacks in 2001.

Mr Crook and his lawyers have questioned the level of evidence the US Department of Justice has against him, saying he has co-operated with all US inquiries.

He has also argued that US finance watchdogs have not indicted him on any charge, yet have indicted seven other Peregrine managers.

He added that the Civil Prosecution Service's decision to demand his passport mirrored previous actions in the case of the NatWest Three, who had been led to believe they could apply for bail in the UK.

"Sadly, minutes before their hearing, the NatWest Three heard that on the contrary, the Home Office was actively against the return of the three to the UK," said Melanie Riley, an adviser to Mr Crook.

"It seems that the UK authorities are once again undermining UK citizens behind the scenes."

If found guilty, Mr Crook could face up to 85 years in jail. He denies the charges.

Accounts probe

The indictments relate to allegations of accounting fraud and an attempted cover-up at San Diego-based Peregrine, triggered by a federal investigation that began in 2002.

The probe began in May of that year after the group issued a warning about its finances.

It soon filed for Chapter 11 bankruptcy protection, claiming its accounts had been inflated. That triggered a sharp drop in its share price, which wiped $4bn off the value of the company.

Peregrine emerged from Chapter 11 - which allows a company to continue trading while its finances are sorted out - a year later. It was sold to Hewlett Packard for $425m in 2005.

A criminal trial into the matter is set to begin in April 2007. Several of those indicted have already entered guilty pleas, including former Worldwide Sales chief Douglas Powanda.

© BBC News

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