Parrot Corporation Limited was a British floppy diskette manufacturer formed in 1983, that operated from Llantarnam Industrial Park in Cwmbran, south Wales. The company was a start-up venture funded by the Welsh Development Agency (WDA). The company suffered financial difficulties in 1985, a company investigation uncovered fraud, culminating in the dismissal of company director Frank E. Peters. A British political controversy ensued, with its focus upon the fraud and the WDA's investment practices. Peters was extradited to Britain to face a criminal trial, but was acquitted of all charges. The company became bankrupt due to financial and market pressures, and its assets were later sold for £1.25 million. Peters was subject to a United States court case in 2007; the charges included conspiracy, fraudulently inflating the value of security to a bank, bank fraud, mail fraud and wire fraud. History Parrot Corporation was set up in 1983 as the only British based fully integrated manufacturer of floppy diskettes for personal computers, a start-up venture funded partly by the WDA. The company manufactured 8", " and " floppy diskettes and provided duplication services and technical support to technology transfer companies. The WDA approached an American citizen, Frank E. Peters to set up the company, his role was to provide expertise in setting up the manufacturing plant and oversee the production facilities. Peters was an investor in the company along with the WDA who contributed £1.5 million, with a further £2.5 million in the form of a loan from the European Coal and Steel Community (ECSC), an organisation serving to unify the industry of Western Europe and created the foundation for the modern-day European Union. The ECSC would provide the loan on condition of a loan guarantee, this guarantee was provided by the Northern Trust Bank, Chicago in the United States. Additional investors were arranged by the WDA for the purpose of purchasing equipment and to provide working capital for the company. Financial irregularities Financial problems were experienced in 1985 due to the decline in the market price for diskettes, the poor performance of the pound against the dollar, the increasing costs of equipment, the delay in the construction of the Cwmbran factory and late funding by the WDA. An internal investigation carried out by the company secretary discovered that £2 million of the ECSC loan was missing from the Parrot accounts. Due to this irregularity, Peters was fired by the company