Man held in 'Saddam oil scam' probe

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US prosecutors want to put John Irving, 52, on trial over claims he illegally breached UN sanctions over the purchase of Iraqi oil.

Officers from the Metropolitan Police's extradition unit arrested Mr Irving in central London. He is due to appear at City of Westminster Magistrates' Court.

They were acting after US authorities issued an extradition warrant detailing the allegations he faces.

Mr Irving, of Sherborne St John, Hampshire, is accused of conspiring with others to evade sanctions blocking the sale of Iraqi oil.

The claims involve the oil-for-food programme which was designed to allow Iraq to export a limited supply of its crude oil in return for humanitarian goods.

US prosecutors said Mr Irving manipulated the scheme and defrauded the United Nations (UN) for profit through his employer, Bayoil.

Two others, including David Chalmers, owner of the Houston-based company, have already been been charged.

All three face up to 62 years in prison and a maximum fine of £530,000 (1 million US dollars) if convicted.

It is alleged that the trio fixed a deflated official selling price for oil between January 2000 and March 2003, when the first Iraq war began. At the same time they paid illegal, secret commissions and surcharges Iraqi government officials, it is claimed.