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ID:918180
User:213.233.144.72
Article:Nick Leeson
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{{About|the derivatives broker|the racing driver|Nick Leason}}
 
{{About|the derivatives broker|the racing driver|Nick Leason}}
 
 
{{Infobox person
 
{{Infobox person
| image =
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| image =
 
| image_size =
 
| image_size =
| name = Nicholas Leeson
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| name = Nicholas son
| caption =
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| caption =
 
| birth_date = {{birth date and age|df=yes|1967|02|25}}
 
| birth_date = {{birth date and age|df=yes|1967|02|25}}
 
| occupation = {{Plainlist|
 
| occupation = {{Plainlist|
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* [[derivative (finance)|derivatives]] [[broker]] (former)
 
* [[derivative (finance)|derivatives]] [[broker]] (former)
 
}}
 
}}
| spouse = {{Plainlist|
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| spouse = {{Plainlist|
 
* Lisa Leeson<br>(m. 1992–1997 divorced)
 
* Lisa Leeson<br>(m. 1992–1997 divorced)
 
* Leona Tormay<br>(m. 2003–present)
 
* Leona Tormay<br>(m. 2003–present)
 
}}
 
}}
| website = {{URL|nickleeson.com}}
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| website = {{URL|nickleeson.com}}
 
}}
 
}}
'''Nicholas "Nick" Leeson''' (born 25 February 1967) is a former derivatives broker whose fraudulent, [[Rogue trader|unauthorized speculative trading]] caused the collapse of [[Barings Bank]], the [[United Kingdom]]'s oldest [[investment bank]], for which he was sent to prison.<ref name="25 Million Pounds">{{cite web|url=http://documentarystorm.com/25-million-pounds/|title=25 Million Pounds|date=2009-12-27|accessdate=2012-02-23}}</ref> Since leaving prison in 1999 he became, and subsequently resigned as, the CEO of [[Republic of Ireland|Irish]] [[Association football|football]] club [[Galway United F.C.|Galway United]] and is active on the keynote / after-dinner speaking circuit where he advises companies about risk and corporate responsibility.<ref>{{cite news|title=Nick Leeson Lecturing Others on The Current Recession|url=http://www.telegraph.co.uk/finance/4177449/Nick-Leeson-how-the-original-rogue-trader-at-Barings-Bank-is-thriving-in-the-credit-crunch.html|location=London|publisher=[[The Daily Telegraph]]|first=Peter|last=Culshaw|date=2009-01-08| accessdate=2012-02-23}}</ref>
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'''Nicholas "Nick" Leeson''' (born 25 February 1967) is a former pimp named billy bom bom banger broker ., [[Rogue trader|unauthorized speculative trading]] caused the collapse of [[Barings Bank]], the [[United Kingdom]]'s oldest [[investment bank]], for which he was sent to prison.<ref name="25 Million Pounds">{{cite web|url=http://documentarystorm.com/25-million-pounds/|title=25 Million Pounds|date=2009-12-27|accessdate=2012-02-23}}</ref> Since leaving prison in 1999 he became, and subsequently resigned as, the CEO of [[Republic of Ireland|Irish]] [[Association football|football]] club [[Galway United F.C.|Galway United]] and is active on the keynote / after-dinner speaking circuit where he advises companies about risk and corporate responsibility.<ref>{{cite news|title=Nick Leeson Lecturing Others on The Current Recession|url=http://www.telegraph.co.uk/finance/4177449/Nick-Leeson-how-the-original-rogue-trader-at-Barings-Bank-is-thriving-in-the-credit-crunch.html|location=London|publisher=[[The Daily Telegraph]]|first=Peter|last=Culshaw|date=2009-01-08| accessdate=2012-02-23}}</ref>
 
 
==Early life==
 
==Early life==
 
Leeson was born in [[Watford]], where he attended [[Parmiter's School]]. After finishing school in 1985 he landed a job as a clerk with a private bank, [[Coutts]]. He then moved to [[Morgan Stanley]] in 1987 for two years, eventually ending up with Barings in 1989.
 
Leeson was born in [[Watford]], where he attended [[Parmiter's School]]. After finishing school in 1985 he landed a job as a clerk with a private bank, [[Coutts]]. He then moved to [[Morgan Stanley]] in 1987 for two years, eventually ending up with Barings in 1989.
 
 
==Career==
 
==Career==
In 1992 he was appointed general manager of a new operation in [[futures markets]] on the [[Singapore International Monetary Exchange]] (SIMEX).<ref name="nytimes">{{cite web|url=http://www.nytimes.com/1996/03/31/books/upper-class-twits-made-me-do-it.html|title=Upper-Class Twits Made Me Do It|author=Floyd Norris|date=1996-03-31|publisher=[[New York Times]]|accessdate=2012-02-23}}</ref> Barings had held a seat on SIMEX for some time, but did not activate it until Leeson was sent over. Leeson was sent to Singapore after he was denied a broker's license in the United Kingdom because of fraud on his application. Neither Leeson nor Barings disclosed this denial when Leeson applied for his license in Singapore.<ref>{{cite book|title=International Finance: Transactions, Policy, and Regulation|author=Hal S. Scott|publisher=[[Foundation Press]]|year=2006|isbn=9781599412634}}</ref>
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In 1992 he was appointed general manager of a new operation in [[futures markets]] on the [[Singapore International Monetary Exchange]] (SIMEX).<ref name="nytimes">{{cite web|url=http://www.nytimes.com/1996/03/31/books/upper-class-twits-made-me-do-it.html|title=Upper-Class Twits Made Me Do It|author=Floyd Norris|date=1996-03-31|publisher=[[New York Times]]|accessdate=2012-02-23}}</ref> Barings had held a seat on SIMEX for some time, but did not activate it until Leeson was sent over. Leeson was sent to Singapore after he was denied a broker's license in the United Kingdom because of fraud on his application. Neither Leeson nor Barings disclosed this denial when Leeson applied for his license in Singapore.<ref>{{cite book|title=International Finance: Transactions, Policy, and Regulation|author=Hal S. Scott|publisher=[[Foundation Press]]|year=2006|isbn=9781599412634}}</ref>
 
 
In October 1994, Leeson was arrested in Singapore for an incident involving [[mooning]].
 
In October 1994, Leeson was arrested in Singapore for an incident involving [[mooning]].
 
 
From 1992, Leeson made unauthorized speculative trades that at first made large profits for Barings: £10 million, which accounted for 10% of Barings' annual income.<ref>{{cite web|url=http://www.nickleeson.com/biography/full_biography.html|title=Nick Leeson: biography part I|date=2011-03-01|accessdate=2012-02-23}}</ref> He earned a bonus of £130,000 on his salary of £50,000 for that year.
 
From 1992, Leeson made unauthorized speculative trades that at first made large profits for Barings: £10 million, which accounted for 10% of Barings' annual income.<ref>{{cite web|url=http://www.nickleeson.com/biography/full_biography.html|title=Nick Leeson: biography part I|date=2011-03-01|accessdate=2012-02-23}}</ref> He earned a bonus of £130,000 on his salary of £50,000 for that year.
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However, his luck soon went sour and he used one of Barings' [[error account]]s (accounts used to correct mistakes made in trading) to hide his losses. The account was numbered 88888 – 8 being a number considered to be very lucky in [[Numbers in Chinese culture|Chinese numerology]]. Leeson claims that this account was first used to hide an error made by one of his colleagues; rather than buy 20 contracts as the customer had ordered, she had sold them, costing Barings £20,000.
However, his luck soon went sour and he used one of Barings' [[error account]]s (accounts used to correct mistakes made in trading) to hide his losses. The account was numbered 88888 – 8 being a number considered to be very lucky in [[Numbers in Chinese culture|Chinese numerology]]. Leeson claims that this account was first used to hide an error made by one of his colleagues; rather than buy 20 contracts as the customer had ordered, she had sold them, costing Barings £20,000.
 
 
 
However, Leeson used this account to cover further bad trades. He insists that he never used the account for his own gain, but in 1996 the ''[[New York Times]]'' quoted "British press reports" as claiming that investigators had located approximately $35 million in various bank accounts tied to him.<ref name="nytimes"/>
 
However, Leeson used this account to cover further bad trades. He insists that he never used the account for his own gain, but in 1996 the ''[[New York Times]]'' quoted "British press reports" as claiming that investigators had located approximately $35 million in various bank accounts tied to him.<ref name="nytimes"/>
 
 
Management at Barings Bank also allowed Leeson to remain Chief Trader while also being responsible for settling his trades, jobs usually done by two different people. This made it much simpler for him to hide his losses from his superiors.
 
Management at Barings Bank also allowed Leeson to remain Chief Trader while also being responsible for settling his trades, jobs usually done by two different people. This made it much simpler for him to hide his losses from his superiors.
 
 
==Downfall==
 
==Downfall==
 
By the end of 1992, the account's losses exceeded £2 million, which ballooned to £208 million by the end of 1994.
 
By the end of 1992, the account's losses exceeded £2 million, which ballooned to £208 million by the end of 1994.
 
 
The beginning of the end occurred on 16 January 1995, when Leeson placed a [[short straddle]] in the [[Stock Exchange of Singapore|Singapore]] and [[Tokyo stock exchange|Tokyo]] stock exchanges, essentially betting that the Japanese stock market would not move significantly overnight. However, the [[Kobe earthquake]] hit early in the morning on 17 January, sending Asian markets, and Leeson's trading positions, into a tailspin. Leeson attempted to recoup his losses by making a series of increasingly risky new trades (using a Long-Long Future Arbitrage), this time betting that the [[Nikkei Stock Average]] would make a rapid recovery. However, the recovery failed to materialize.
 
The beginning of the end occurred on 16 January 1995, when Leeson placed a [[short straddle]] in the [[Stock Exchange of Singapore|Singapore]] and [[Tokyo stock exchange|Tokyo]] stock exchanges, essentially betting that the Japanese stock market would not move significantly overnight. However, the [[Kobe earthquake]] hit early in the morning on 17 January, sending Asian markets, and Leeson's trading positions, into a tailspin. Leeson attempted to recoup his losses by making a series of increasingly risky new trades (using a Long-Long Future Arbitrage), this time betting that the [[Nikkei Stock Average]] would make a rapid recovery. However, the recovery failed to materialize.
 
 
Leeson left a note reading "I'm Sorry" and fled Singapore on 23 February. Losses eventually reached £827 million ([[US dollar|US$]]1.4 billion), twice the bank's available trading capital. After a failed bailout attempt, Barings was declared insolvent on 26 February.
 
Leeson left a note reading "I'm Sorry" and fled Singapore on 23 February. Losses eventually reached £827 million ([[US dollar|US$]]1.4 billion), twice the bank's available trading capital. After a failed bailout attempt, Barings was declared insolvent on 26 February.
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After fleeing to [[Malaysia]], [[Thailand]], and finally [[Germany]], Leeson was arrested and extradited back to Singapore on 20 November 1995, though his wife Lisa was allowed to return to England. While he had authorisation for the 16 January short straddle, he was charged with fraud for deceiving his superiors about the riskiness of his activities and the scale of his losses. Several observers have placed much of the blame on the bank's own deficient internal [[financial audit|auditing]] and [[risk management]] practices. Indeed, the Singapore authorities' report on the collapse was scathingly critical of Barings management, claiming that senior officials knew or should have known about the "five eights" account.
After fleeing to [[Malaysia]], [[Thailand]], and finally [[Germany]], Leeson was arrested and extradited back to Singapore on 20 November 1995, though his wife Lisa was allowed to return to England. While he had authorisation for the 16 January short straddle, he was charged with fraud for deceiving his superiors about the riskiness of his activities and the scale of his losses. Several observers have placed much of the blame on the bank's own deficient internal [[financial audit|auditing]] and [[risk management]] practices. Indeed, the Singapore authorities' report on the collapse was scathingly critical of Barings management, claiming that senior officials knew or should have known about the "five eights" account.
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Leeson pleaded guilty to two counts of "deceiving the bank's auditors and of cheating the Singapore exchange",<ref>{{cite web|url=http://www.nickleeson.com/biography/full_biography_02.html|title=Nick Leeson: biography part II|date=2011-03-01|accessdate=2012-02-23}}</ref> including forging documents.<ref>{{cite web|url=http://www.crimeandinvestigation.co.uk/crime-files/nick-leeson-rogue-trader/biography.html|title=Nick Leeson: Rogue Trader|publisher=[[Crime & Investigation Network]]}}</ref> Sentenced to six and a half years in [[Changi Prison]] in Singapore, he was released from prison in 1999, having been diagnosed with [[colon cancer]], which he survived despite grim forecasts at the time.
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While in prison, in 1996, Leeson published an autobiography, ''[[Rogue Trader (book)|Rogue Trader]]'', detailing his acts. A review in the financial columns of the ''New York Times'' stated, "This is a dreary book, written by a young man very taken with himself, but it ought to be read by banking managers and auditors everywhere."<ref name="nytimes"/> In 1999, the book was made into a [[Rogue Trader (film)|film of the same name]] starring [[Ewan McGregor]] and [[Anna Friel]].
Leeson pleaded guilty to two counts of "deceiving the bank's auditors and of cheating the Singapore exchange",<ref>{{cite web|url=http://www.nickleeson.com/biography/full_biography_02.html|title=Nick Leeson: biography part II|date=2011-03-01|accessdate=2012-02-23}}</ref> including forging documents.<ref>{{cite web|url=http://www.crimeandinvestigation.co.uk/crime-files/nick-leeson-rogue-trader/biography.html|title=Nick Leeson: Rogue Trader|publisher=[[Crime & Investigation Network]]}}</ref> Sentenced to six and a half years in [[Changi Prison]] in Singapore, he was released from prison in 1999, having been diagnosed with [[colon cancer]], which he survived despite grim forecasts at the time.
 
 
While in prison, in 1996, Leeson published an autobiography, ''[[Rogue Trader (book)|Rogue Trader]]'', detailing his acts. A review in the financial columns of the ''New York Times'' stated, "This is a dreary book, written by a young man very taken with himself, but it ought to be read by banking managers and auditors everywhere."<ref name="nytimes"/> In 1999, the book was made into a [[Rogue Trader (film)|film of the same name]] starring [[Ewan McGregor]] and [[Anna Friel]].
 
 
 
The events also form the subject matter of a 1996 documentary film made by [[Adam Curtis]], titled ''[[25 Million Pounds]]''.<ref name="25 Million Pounds"/>
 
The events also form the subject matter of a 1996 documentary film made by [[Adam Curtis]], titled ''[[25 Million Pounds]]''.<ref name="25 Million Pounds"/>
 
 
==Aftermath==
 
==Aftermath==
Nick Leeson's first wife Lisa divorced him while he was in prison. He married Leona Tormay, in 2003<ref>{{cite news|title=Rogue trader Leeson ties knot with Irish love |url=http://www.independent.ie/national-news/rogue-trader-leeson-ties-knot-with-irish-love-217095.html |publisher=[[Irish Independent]] |first=Brian |last=McDonald |date=2003-06-14 |accessdate=2012-02-23}}</ref> and they now live in [[Barna]], [[County Galway]], in the west of [[Republic of Ireland|Ireland]]. He is a regular guest on the after-dinner and keynote speaking circuit.<ref>{{cite news|url=http://www.nmplive.co.uk/viewTalent.aspx?TalentID=1243|title=Nick Leeson: Infamous Rogue Trader Responsible For The Collapse of Barings Bank In 1995|accessdate=2012-02-23}}</ref> He was appointed Commercial Manager of [[Galway United F.C.|Galway United Football Club]] in April 2005, rising to the position of General Manager in late November 2005. By July 2007 he had become the club's CEO<ref name="bbc-1">{{cite news|title=Rogue trader Leeson 'eyes deals'|url=http://news.bbc.co.uk/2/hi/business/6426519.stm |date=2007-03-07 |publisher=[[BBC News]] |accessdate=2012-02-23}}</ref> but in February 2011, Leeson resigned his position.<ref>{{cite news|url=http://www.extratime.ie/newsdesk/articles/4865/|title=Leeson resigns Galway Utd CEO position|author=Brendan White|date=2011-02-02|accessdate=2012-02-23}}</ref> Leeson remains as a member of the board of directors of the club, but no longer has any role in the day to day operation of the club. He still deals in the stock markets, but only with his own money.<ref name="bbc-1"/>
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Nick Leeson's first wife Lisa divorced him while he was in prison. He married Leona Tormay, in 2003<ref>{{cite news|title=Rogue trader Leeson ties knot with Irish love |url=http://www.independent.ie/national-news/rogue-trader-leeson-ties-knot-with-irish-love-217095.html |publisher=[[Irish Independent]] |first=Brian |last=McDonald |date=2003-06-14 |accessdate=2012-02-23}}</ref> and they now live in [[Barna]], [[County Galway]], in the west of [[Republic of Ireland|Ireland]]. He is a regular guest on the after-dinner and keynote speaking circuit.<ref>{{cite news|url=http://www.nmplive.co.uk/viewTalent.aspx?TalentID=1243|title=Nick Leeson: Infamous Rogue Trader Responsible For The Collapse of Barings Bank In 1995|accessdate=2012-02-23}}</ref> He was appointed Commercial Manager of [[Galway United F.C.|Galway United Football Club]] in April 2005, rising to the position of General Manager in late November 2005. By July 2007 he had become the club's CEO<ref name="bbc-1">{{cite news|title=Rogue trader Leeson 'eyes deals'|url=http://news.bbc.co.uk/2/hi/business/6426519.stm |date=2007-03-07 |publisher=[[BBC News]] |accessdate=2012-02-23}}</ref> but in February 2011, Leeson resigned his position.<ref>{{cite news|url=http://www.extratime.ie/newsdesk/articles/4865/|title=Leeson resigns Galway Utd CEO position|author=Brendan White|date=2011-02-02|accessdate=2012-02-23}}</ref> Leeson remains as a member of the board of directors of the club, but no longer has any role in the day to day operation of the club. He still deals in the stock markets, but only with his own money.<ref name="bbc-1"/>
 
 
In June 2005, Leeson released a new book, ''Back from the Brink: Coping with Stress''. It picks up his story where ''Rogue Trader'' left off, including in-depth conversations with psychologist Ivan Tyrrell asserting that the prolonged periods of severe stress that affected Leeson's mental and physical health{{context-inline|date=February 2012}} have parallels in many other people's lives.
 
In June 2005, Leeson released a new book, ''Back from the Brink: Coping with Stress''. It picks up his story where ''Rogue Trader'' left off, including in-depth conversations with psychologist Ivan Tyrrell asserting that the prolonged periods of severe stress that affected Leeson's mental and physical health{{context-inline|date=February 2012}} have parallels in many other people's lives.
 
 
==Trading jacket==
 
==Trading jacket==
 
On 5 April 2007, the Guardian newspaper reported that KPMG, the liquidators of Barings PLC, had sold a trading jacket thought to have been worn by Nick Leeson while trading on SIMEX in Singapore. The jacket was offered for sale on eBay but it failed to reach its reserve price despite a highest bid of £16,100. It was subsequently sold for £21,000.<ref>{{cite news|url=http://www.guardian.co.uk/business/2007/apr/05/money1 |title=Nick Leeson's jacket raises £21,000 |first=Graeme |last=Wearden |date=2007-04-05 |publisher=[[The Guardian]] |location=London |accessdate=2012-02-23}}</ref> In October 2007 a similar jacket used by Leeson's team but not thought to have been worn by Leeson himself sold at auction for £4,000.<ref>{{cite web|url=http://www.norwood.org.uk/contact-us/pr-media/newsarchive/2007/Fundraising+News/distressed_investing_dinner_2007.htm|title=Howard makes his mark at Norwood’s Distressed Investing Dinner|date=2007-10-16|publisher=[[Norwood_(charity)|Norwood]]|accessdate=2012-02-23}}</ref>
 
On 5 April 2007, the Guardian newspaper reported that KPMG, the liquidators of Barings PLC, had sold a trading jacket thought to have been worn by Nick Leeson while trading on SIMEX in Singapore. The jacket was offered for sale on eBay but it failed to reach its reserve price despite a highest bid of £16,100. It was subsequently sold for £21,000.<ref>{{cite news|url=http://www.guardian.co.uk/business/2007/apr/05/money1 |title=Nick Leeson's jacket raises £21,000 |first=Graeme |last=Wearden |date=2007-04-05 |publisher=[[The Guardian]] |location=London |accessdate=2012-02-23}}</ref> In October 2007 a similar jacket used by Leeson's team but not thought to have been worn by Leeson himself sold at auction for £4,000.<ref>{{cite web|url=http://www.norwood.org.uk/contact-us/pr-media/newsarchive/2007/Fundraising+News/distressed_investing_dinner_2007.htm|title=Howard makes his mark at Norwood’s Distressed Investing Dinner|date=2007-10-16|publisher=[[Norwood_(charity)|Norwood]]|accessdate=2012-02-23}}</ref>
 
 
==Publications==
 
==Publications==
 
* {{cite book|title=[[Rogue Trader (book)|Rogue Trader]]: How I Brought Down Barings Bank and Shook the Financial World|first1=Nick|last1=Leeson|first2=Edward|last2=Whitley|year=1996|month=March|ISBN=0-316-51856-5}}
 
* {{cite book|title=[[Rogue Trader (book)|Rogue Trader]]: How I Brought Down Barings Bank and Shook the Financial World|first1=Nick|last1=Leeson|first2=Edward|last2=Whitley|year=1996|month=March|ISBN=0-316-51856-5}}
 
 
* {{cite book|title=Back from the Brink: Coping with Stress|first1=Nick|last1=Leeson|first2=Ivan|last2=Tyrrell| year=2005|month=July|ISBN=0-7535-1075-8}}
 
* {{cite book|title=Back from the Brink: Coping with Stress|first1=Nick|last1=Leeson|first2=Ivan|last2=Tyrrell| year=2005|month=July|ISBN=0-7535-1075-8}}
 
 
==Notes==
 
==Notes==
 
{{Reflist}}
 
{{Reflist}}
 
 
==See also==
 
==See also==
 
*[[Speculation]] in financial markets
 
*[[Speculation]] in financial markets
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*[[Galway United]]
 
*[[Galway United]]
 
*[[CITIC Group]]
 
*[[CITIC Group]]
 
 
==External links==
 
==External links==
 
*[http://www.nickleeson.com Nick Leeson] official website
 
*[http://www.nickleeson.com Nick Leeson] official website
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*{{cite web|url=http://www.galwayunitedfc.ie|title=Galway United Football Club}}
 
*{{cite web|url=http://www.galwayunitedfc.ie|title=Galway United Football Club}}
 
*{{cite web|url=http://singapore.thinkexpats.com/places/67-uniquely-singapore/90-singapores-most-infamous-convicts.html?start=2|title=Singapore's Most Famous Convicts - Bank Bust|author=Adeline Loh}}
 
*{{cite web|url=http://singapore.thinkexpats.com/places/67-uniquely-singapore/90-singapores-most-infamous-convicts.html?start=2|title=Singapore's Most Famous Convicts - Bank Bust|author=Adeline Loh}}
 
 
{{Persondata <!-- Metadata: see [[Wikipedia:Persondata]] -->
 
{{Persondata <!-- Metadata: see [[Wikipedia:Persondata]] -->
| NAME = Leeson, Nick
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| NAME = Leeson, Nick
 
| ALTERNATIVE NAMES =
 
| ALTERNATIVE NAMES =
 
| SHORT DESCRIPTION =
 
| SHORT DESCRIPTION =
| DATE OF BIRTH = 25 February 1967
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| DATE OF BIRTH = 25 February 1967
| PLACE OF BIRTH =
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| PLACE OF BIRTH =
| DATE OF DEATH =
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| DATE OF DEATH =
| PLACE OF DEATH =
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| PLACE OF DEATH =
 
}}
 
}}
 
{{DEFAULTSORT:Leeson, Nick}}
 
{{DEFAULTSORT:Leeson, Nick}}
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[[Category:British people imprisoned abroad]]
 
[[Category:British people imprisoned abroad]]
 
[[Category:People from County Galway]]
 
[[Category:People from County Galway]]
 
 
[[cs:Nicholas Leeson]]
 
[[cs:Nicholas Leeson]]
 
[[de:Nick Leeson]]
 
[[de:Nick Leeson]]
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