-Caveat Lector-

Accused Banker Dresses As a Woman

By MITCH STACY
.c The Associated Press

LONDON (AP) -- The former banker turned up for court dressed in a coral
blouse, form-hugging red skirt and black heels, the picture of femininity and
urban fashion sense.

After a pause and a coy smile for waiting photographers, Peter Young went
inside to face the judge.

The former fund manager -- for the record, he is a man -- is charged with
fraud in one of the most sensational scandals to emerge from London's
financial district in years.

Now, Young's cross-dressing has investigators speculating he's trying to pull
a ruse to raise questions about his mental health. Some have dubbed it ``the
Klinger defense,'' in a nod to the ``M A S H'' TV series character, Cpl.
Klinger, who dressed like a woman to try to get out of the Army.

Young and his lawyers have refused to talk about his newfound fashion sense
during court appearances last month and in November, and have not revealed
what his defense will be.

However, former colleagues and acquaintances recall Young, 41, as a quiet,
intellectual banker and family man whose conventional dark suits and ties
were anything but flashy.

If Young is ruled mentally ill by the court, he could get off with a lighter
sentence and a more comfortable place to do his time is he is convicted. He
is charged with five counts of criminal fraud and if convicted, faces up to
seven years in prison.

Young's estranged wife, Harmanna Van Dalen, insists the get-up is not a fake,
saying their marriage broke up because of his tendency to dress like a woman
and that he has talked about having a sex-change operation. Their two young
sons, she told the Daily Telegraph newspaper, were ``generally unaware of the
situation.''

At his first court appearance in November, Young wore a light brown sweater
with a pattern of violet and blue pansies over a white dress with a floral
print. He had a shoulder-length dark bob, wore beige shoes with two-inch
heels and carried a coral raffia-weave handbag. Last month, he wore the
tight-fitting skirt and blouse number.

The charges against Young stem from activities between 1994 and 1996, when
Young worked for the Morgan Grenfell Asset Management unit of Germany's
Deutsche Bank AG. He is charged along with three other men, former employees
of Fiba Nordic Securities, a London-based brokerage firm.

Prosecutors say Young got into trouble by filling three big investment funds
with obscure stocks that were of uncertain value because they were not traded
on any exchange.

Morgan Grenfell then vastly overestimated the value of the funds, and when
investors learned about the irregularities they began panic-selling in
September 1996.

Trading in the funds was halted for three days and resumed only after
Deutsche Bank paid $293 million to buy some of the questionable stocks and
bring the funds into compliance with London regulations.

Morgan Grenfell eventually was fined a record $3.25 million and had to repay
$325 million to investors.

Young remains free on bond while he awaits trial, which has not yet been
scheduled.

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