The families of the victims of Stakeknife, the most senior spy discovered in IRA ranks, could sue Freddie Scappaticci and the British government for the murder of their loved ones.
Stakeknife is believed to have been involved in the death of up to 40 people during his reign in the Provisionals' internal security unit.
The Sunday Tribune has learned their relatives would be free to sue both Scappaticci and the British state if a new police investigation leads to criminal charges.
A civil case against Scappaticci, whom it is alleged is Stakeknife, would mirror the action being taken against former Real IRA leader Mickey McKevitt and the suspected Omagh bombers.
Scapatticci amassed a personal fortune in his work for the British Army undercover Force Research Unit (FRU). Since he fled Belfast, he has lived in Italy and Tenerife.
A case against the British government would be similar to that which has been initiated by IRA victims against Libya for supplying republican weapons.
It hinges on the outcome of a Police Service of Northern Ireland (PSNI) investigation into Scappaticci for perjury. Assistant chief constable Peter Sheridan has confirmed to the human rights' group, British-Irish Rights' Watch, that Scappaticci is under investigation for the offence which carries a mandatory prison sentence.
The PSNI investigation will last around two months. After that, a report will be sent to the public prosecution service.
Three months ago, former British intelligence handler, Martin Ingram, alleged to the PSNI that Scappaticci had committed perjury when he swore an affidavit that he was not Stakeknife. Ingram, who previously outed Scappaticci as an informer, believes the families of Stakeknife's victims have a right to compensation.
Ingram also claims a senior PSNI officer personally confirmed to him that Scappaticci was Stakeknife while the officer was a member of the Stevens' team investigating collusion.
In an affidavit in February 2004, which has been seen by the Sunday Tribune, Scappaticci said "a large number of newspapers identified myself as Stakeknife . . . I strenuously deny this allegation and have already attempted to clear my name of this allegation through the courts".
But the affidavit also demanded Ingram be prosecuted for breaching the Official Secrets' Act and "his contractural duties of confidentiality" as a former British Ministry of Defence employee.
Ingram contacted the PSNI about Scappaticci's alleged perjury earlier this year but the investigation began after British-Irish Rights' Watch raised the matter with Assistant Chief Constable Sheridan.
The investigation is headed by one of the North's most senior officers, det chief supt Phil Wright. Sources told the Sunday Tribune: "The state has never admitted Scappaticci is Stakeknife but that could change if they are forced to prosecute him for perjury.
"While he was working as an agent, Stakeknife killed IRA men who were informers and others who weren't touts but who had to be killed to protect his cover.
"An entire FRU unit was devoted to Stakeknife so top British intelligence officers knew everything he was doing. The state was implicit in many murders."
Stakeknife's victims include IRA informers Joe Fenton and Paddy Flood and IRA man Anthony McKiernan.
