Another Offshore Entity in the Enron Case

As they negotiated a plea deal with Enron prosecutors, the so-called NatWest Three agreed to serve three years and a month in a federal prison. But they may wind up serving much less time, even though there is no parole in the federal system.

How? They could petition to transfer to a penitentiary in their home country, where British law would allow for parole after they had served half their sentence. Such prisoner transfers to jails in their country of origin is not uncommon, according to the U.S. Bureau of Prisons.

Indeed, former Enron executive, David W. Delainey, a Canadian citizen, who pleaded guilty to insider trading was transferred to a Canadian prison last June after serving nine months of a two and a half year sentence. Canadian law also allows for parole.

"It all started with treaties we signed with Mexico to get back U.S. nationals who were convicted of crimes in Mexican courts," said Jordan Paust, professor of international law at the University of Houston.

Similar reciprocal treaties with other nations followed. Sending prisoners back home where they'd get a lesser sentence, he said, "wasn't the original intent."

by Kate Murphy