ATLANTA -- The sentencing hearing of Christopher Drogoul in connection with the illegal loan of $5 billion from Italy's Banca Nazionale del Lavoro to Iraq prior to the Persian Gulf War began Monday in U.S. Federal Court.
Drogoul, the former Atlanta BNL branch manager, pleaded guilty in September to two counts of lying to the Federal Reserve Board and one count of wire fraud.
Drogoul had pleaded guilty to 60 charges, including conspiracy, in connection with making the unauthorized loans to the government of Saddam Hussein, which used them to purchase weapons technology, equipment and food.
He later withdrew his guilty pleas when evidence was presented in federal court that both the U.S. and Italian governments were aware of the loan transactions.
Prosecutors are now seeking a 6 year prison sentence against Drogoul, reindicted over the summer, saying any possible government knowledge of the loans has no bearing on the three charges to which he pleaded guilty.
Defense attorneys want Drougoul, confined to the Atlanta federal penitentiary while awaiting sentencing, released after already serving 20 months.
Testimony in the hearing is expected to continue for several days.
