Detectives hunting double murder suspect James Allen have urged Yorkshire residents to lock their doors and windows after reported sightings of him on the East Coast raised fears the killer could strike again. Allen, a 35-year-old drug user with previous convictions for violence, is believed to have killed his former next-door neighbour in Middlesbrough and murdered a Whitby housewife while on bail for other offences. Police called on him to hand himself in yesterday as they revealed sightings of the suspect had been reported in Whitby, Scarborough and Middlesbrough. More than 100 officers from the Cleveland and North Yorkshire forces are investigating the murders of Colin Dunford, 81, and Julie Davison, 50. Both victims suffered head injuries. The detective leading the inquiry, Temporary Detective Chief Superintendent Gordon Lang of Cleveland Police, said it was a “24/7 operation” that would not stop until Allen is found.

British police are still trying to trace £18m allegedly stolen by the Liberal Democrats' fugitive donor Michael Brown, who is expected to be extradited to Britain within the next 10 days. Brown, 46, was in a holding cell near Madrid airport on Sunday, having been deported from the Dominican Republic, where he had been on the run from UK authorities for three years. Brown, who gave £2.4m to the Liberal Democrats before the 2005 general election, is not expected to challenge a formal move to extradite him to London which has already been set in motion. He was convicted of theft and false accounting in his absence in Britain in 2008 and sentenced to seven years in jail. Detectives are still trying to trace around £18m of Brown's stolen money, which had been moved between his accounts in the US, Britain and Switzerland, the Guardian understands. Brown was estimated to have stolen more than £60m in a number of frauds. Most of his assets have been accounted for in property deals, a Bentley, a yacht and the private jet once used to fly senior Lib Dems across the UK. However, more than £18m has not yet been accounted for. "The file at Interpol on Brown and his associates remains open," a source told the Guardian. Brown's return will be another embarrassing development in the long-running saga over the Lib Dems' biggest single donation. The party has refused to compensate any of Brown's victims, claiming it received the money in good faith and spent it on the 2005 election campaign. Lib Dem leader Nick Clegg welcomed Brown's return to Britain but said on Sunday that the party would not be returning his donation because the Electoral Commission had concluded the money had been received in good faith. The deputy prime minister, who pointed out that the donation was made before he was elected to Westminster, told BBC1's Sunday Politics: "I'm very pleased he's coming back to serve his sentence. This is a convicted fraudster. "I should stress that this is something which happened as far as the Liberal Democrats are concerned before I was even an MP, yet alone leader of the Liberal Democrats. What I've been told is that the Electoral Commission in 2009 looked at this exhaustively – as far as the receipt of that money by the Liberal Democrats from one of his companies. They categorically concluded that the money was received in good faith and all the controls, all the checks that should have been made were reasonably made by the Liberal Democrats at the time. If we'd been shown wanting on those accounts then of course we should pay the money back." But Brown's return will increase focus on the Electoral Commission inquiry into Brown's donations. The inquiry failed to call the Lib Dems' former treasurer, Reg Clark, who resigned over Brown in 2005 and warned advisers to the former Lib Dem leader Charles Kennedy that Brown should be treated with extreme caution. One of Brown's victims said the Lib Dems should return the money. Tony Brown, managing partner at law firm Bivonas which represents US attorney Robert Mann who lost more than $5m (£3m), said Brown may be asked to give evidence as part of his client's claim against the Lib Dems. "The Lib Dems have refused to repay this money to our client even though they know that this is the proceeds of crime. The Electoral Commission has failed to investigate this properly in our view. So now that Brown is returning to the jurisdiction, we can investigate again and establish the basis on which the Lib Dems received this money." Brown is expected to appear before a Spanish court to confirm his name and will then appear before an extradition hearing within 10 days. City of London police, who first uncovered Brown's fraud, confirmed his deportation. Detective Superintendent Bob Wishart said: "We hope that him facing justice will bring some closure to the victims who suffered as a result of his frauds." A close friend of Brown's told the Guardian on Sunday that he had arrived in Spain on Saturday after "volunteering" for deportation from the Dominican Republic, where he has been hiding for three years under the name of Darren Nally. "He asked to return to Britain. He is going home to face the music," the friend said. Brown appeared to come from nowhere when the party was paid £2.4m in the runup to the 2005 election from his company 5th Avenue Partners. A fast-talking and brash Glaswegian, he had walked into the party's then headquarters in Cowley Street and offered it money. He was not registered to vote, had no interest in politics and had never been a party member, but said he was giving the money to create an even playing field. Brown wined and dined with Charles Kennedy and other party grandees, and used his private jet to fly Kennedy across the country during the election campaign. Former Lib Dem insiders say he dazzled them with stories of Gordonstoun public school, St Andrews University and his connections with royalty and the US government. The truth was that he had attended his local school and completed a City and Guilds in catering at Glasgow College of Food Technology. He had no US government links – although he was wanted in Florida for cheque fraud. He was arrested in late 2005 after four former clients said he had duped them out of more than £40m in a high-yield fraud. His victims included Martin Edwards, the former Manchester United chairman, who had invested £8m with 5th Avenue Partners. The court would later be told that 5th Avenue Partners was wholly fraudulent and Brown had given money to the Lib Dems to give himself an air of respectability while duping his victims. The party had been used as part of his cover story, a judge said. In June 2008, while awaiting trial, Brown fled and a warrant was issued for his arrest. In the weeks before he disappeared, from his Hampstead bail address in north London, he changed his name on the electoral roll to Campbell-Brown and allowed his hair to turn grey. He travelled to the Dominican Republic where he enjoyed a millionaire's lifestyle while on the run. He lived in gated communities yards from some of the most pristine beaches in the Caribbean, drove a series of 4x4 vehicles and was a regular at exclusive golf courses. In Punta Cana, an exclusive resort on the eastern tip of the island, he could often be seen walking his dog – named Charles, after the former Lib Dem leader. He was arrested in Punta Cana in January on unrelated fraud allegations.

 A SUSPECTED drug trafficker was found by police hiding in a farmhouse loft in Scotland with a bag stuffed with £70,000, a Spanish court was told last week. Ian Donaldson, 32, is accused of helping fund an international drugs ring smuggling cocaine and speed from Spain to Scotland The former amateur racing driver – who drove a Lamborghini with the distinctive Lambo 88 plate – was tracked down to the farm by officers from the Scottish Crime and Drugs Enforcement Agency. Donaldson – who enjoyed a lavish lifestyle in Marbella and Tenerife– is one of six Brits facing court in Madrid accused of making millions from the drugs trade. Detective Inspector James Wallace of the SCDEA told the court: “I arrested him on February 27, 2009. He was hiding in a loft area in a farm building. We also found £70,000 hidden in a bag.” Eight SCDEA detectives gave evidence to the National Court in the Spanish capital last week via a video link from Edinburgh. The court heard Scottish police mounted a surveillance operation after Donaldson, from Renton, Dunbartonshire, was released on bail. Detectives watched him in a series of meetings in Glasgow and Hamilton in April 2009, as he tried to hide the origins of his fortune, prosecutors allege. Donaldson met with fellow accused Mary Hendry and Joseph Campbell and was observed discussing large sums of money and swapping paperwork for a nightclub in Gran Canaria. It was alleged they were secretly plotting to make it look like Donaldson had made some of his wealth from the club. Meetings took place at supermarkets in Glasgow and Hamilton and the Mitchell Library in Glasgow. DI Wallace told the court: “We saw he (Donaldson) was creating a defence for the Spanish charges. “I believe they (Hendry and Campbell) were both subservient to Donaldson, who instructed them on what to do.” The detective said Donaldson and his company IRD Services were also investigated for money- laundering in Scotland. He added: “There is evidence he purchased seven vehicles in Scotland, worth up to £900,000, between 2006 and 2008.” Mary Hendry told the court she only met Donaldson twice for legitimate business meetings. She said: “Joseph Campbell introduced me to Ian Donaldson because I was trying to sell my restaurant. “I met him the next day and he said he was not interested. I never saw him again.” It is alleged Donaldson was the money man for a gang of drug smugglers based in Tenerife and Marbella, led by Glaswegian Ronald O’Dea, 45. The gang are alleged to have spent millions on luxury villas, fast cars and yachts. In October 2008, police seized a a haul of amphetamines worth £660,000 heading to Scotland after stopping a lorry in Oxfordshire. Donaldson, Hendry and O’Dea share the dock in Madrid with fellow Scot James MacDonald, 62, and Londoners Steve Brown, 45, and Deborah Learmouth, 49. The gang face charges ranging from drug-trafficking to money-laundering. They deny all charges. Two other defendants – Brian Rawlings and Joseph Campbell – failed to show up at the trial. The judges will give their verdict at a later date.

Wayne Rooney and England rugby union World Cup winner Matt Dawson are among the new wave of high-profile figures suing Rupert Murdoch's News International over alleged News of the World phone hacking. The England and Manchester United football star, his agent Paul Stretford, Dawson, now a BBC rugby commentator and Question of Sport team captain, actor James Nesbitt and Sir John Major's former daughter-in-law, Emma Noble, are among 46 new phone-hacking cases filed at the high court in London. Times Newspapers, the News International subsidiary that publishes the Times and Sunday Times, is also facing its first civil damages claim, from Northern Ireland human rights campaigner Jane Winter, who is also suing NoW publisher, News Group Newspapers. Winter's claim is related to an article in the Sunday Times in August 2006, her solicitor confirmed. A reference to the article was made in a witness statement she submitted to the Leveson inquiry in February. Winter alleged in evidence to the inquiry that her emails to the former British army intelligence officer Ian Hurst were hacked by NoW. A News International spokeswoman said Winter's case would be "defended vigorously". Others who have filed claims in the past few days seeking damages for alleged invasion of privacy from News Group, the News International subsidiary that published the now-closed Sunday tabloid, include former Conservative cabinet minister and chief whip Lord Blencathra and former Fire Brigades Union general secretary Andy Gilchrist. The list of new claimants also features Michelle Bayford, the former girlfriend of the victim of the 2006 so-called "elephant man" drug trial case. Her then boyfriend, Ryan Wilson, spent three weeks in a coma and lost all his toes and parts of his fingers to gangrene. Another claimant, Anne Colvin, was a witness in the Tommy Sheridan perjury trial. At a case management conference at the high court in London , Hugh Tomlinson QC, representing victims of alleged phone hacking, told Mr Justice Vos that he had 44 new cases filed while two others had submitted their claims via another legal representative. The court also heard that law firm Harbottle & Lewis has a number of "sensitive clients" who wish to remain anonymous. It is expected that up to 200 new claims will be filed over the coming months, Tomlinson told the court in a previous hearing. Claims filed in the past week bring the number of new cases against News International to 46. This figure includes earlier claims filed by public figures including Cherie Booth, Alex Best, the former wife of the late footballer George Best, and Colin Stagg, the man wrongly accused of murdering Rachel Nickell. Others who have filed claims include comedian Bobby Davro, actor Tina Hobley's former husband Steve Wallington, TV personalities Jamie Theakston and Jeff Brazier, the former boxer Chris Eubank, and footballers Peter Crouch, Kieron Dyer and Jermaine Jenas. The cases are part of a second wave of civil actions which Vos is managing following the settlement of more than 50 cases earlier this year including claims by Jude Law, Charlotte Church and Lord Prescott. Tomlinson did not disclose the names of the claimants on Friday, but court documents show that new cases submitted to the high court in the past week bring the number of new actions faced by News International to nearly 50, a number that is expected to rise considerably. Tomlinson told the court that News International had received 100 requests for discovery of preliminary disclosure. He said there were 4,791 potential phone-hacking victims, of which 1,892 had been contacted by the police. The police believed 1,174 were "likely victims". Court 30 in the Rolls Building of the high court was packed, with more than 50 law firms acting for victims. Vos said there were 58 firms of solicitors representing only 100 victims, which he told Tomlinson was "unbelievable". The judge added that he wanted to ensure costs are reduced for claimants. "Many of them have seen the light and have instructed lawyers who have specialist knowledge of this case," said Vos. He suggested possible tariffs of costs for each element of the legal action. This would mean fresh claimants could access to information relating to the News of the World's phone-hacking activity already produced on discovery in earlier cases, without incurring the costs associated with a full action. "I will have no sympathy for outrageous cost estimates," he said. "A claimant is entitled to have a solicitor, but what he is not entitled to have is a solicitor who knows nothing about the case and charges the defendant for that."

British police arrested three people, including the royal editor of Rupert Murdoch's Sun tabloid, a source familiar with the situation said, in an escalation of a long-running phone hacking scandal which reaches into Britain's political establishment.

Thursday's arrests and the fact they stemmed from information given to the police by Murdoch's company itself is likely to reignite tensions within the media group, just days before parliament gives its verdict on how the culture of illegality came about.

Next week Rupert Murdoch and son James will also appear before a judicial inquiry to answer questions over the conduct of the press, which will focus on the close ties between Murdoch, his executives and the political establishment.

James Murdoch will appear in court room 73 at the Royal Courts of Justice on Tuesday while lawyers at the inquiry have cleared a day and a half to grill the 81-year-old Rupert on Wednesday and Thursday.

"This was always going to be an important six weeks in this affair, with the Murdochs and politicians going before the Leveson judicial inquiry, but it will be exacerbated by the arrests and the imminent committee report," said Steven Barnett, communications professor at the University of Westminster.

Police made the arrests one day after prosecutors confirmed they had started to examine the police case against four journalists and seven others to establish whether they should be charged with a range of offences including perverting the course of justice.

Press reports have speculated that one of those named in the files is Rebekah Brooks, a former editor of the News of the World and Sun tabloids and a close friend of both Murdochs and Prime Minister David Cameron.

Brooks has been arrested twice, once for corruption and intercepting communications, and more recently for perverting the course of justice, along with her husband, Charlie Brooks.

The three arrested on Thursday were detained at dawn and questioned over inappropriate payments made to police and public officials.

The source familiar with the situation said one of those was Duncan Larcombe, royal editor and a former defence correspondent at the Sun, Britain's biggest selling daily newspaper.

A spokeswoman for Murdoch's British newspaper arm News International confirmed that one of those arrested was a Sun journalist but declined to give further details.

Larcombe was previously a defence correspondent at the Sun and another person arrested on Thursday was described by police as a 42-year-old former member of the armed forces. A woman aged 38 has also been arrested on suspicion of aiding and abetting misconduct in a public office.

ROUTINE HACKING

Murdoch's British newspaper arm has been rocked in the last year by allegations that journalists at the Sun's sister title, the News of the World, had routinely hacked into phones to generate salacious front-page stories.

The police investigation, which forced the closure of the 168-year-old News of the World, has since moved on to the Sun newspaper and whether its journalists paid police and public officials for stories.

While damaging the reputation of Murdoch, the intense spotlight has also revealed the extremely close links he and his executives have with politicians and senior police officers, embarrassing many with tales of horse rides and Christmas drinks between the upper echelons of Murdoch executives and politicians.

Police said the latest arrests were prompted by information provided by the Management and Standards Committee, a small team set up by Murdoch's News Corp to co-operate closely with the police in a move that has infuriated newspaper staff.

The 81-year-old Murdoch was forced to travel to London in February to reassure journalists of his commitment to the Sun after a string of earlier arrests caused a showdown at the paper by staff who felt they had been abandoned by their management.

Since then, the Sun has launched a Sunday version and both the Sun and Murdoch's Times newspaper have noticeably hardened their position towards the government, which turned on Murdoch at the height of the hacking scandal last year.

That antagonism is likely to be exacerbated in the coming weeks when the parliamentary select committee, which summoned James and Rupert Murdoch at the height of the scandal last year, publishes its findings.

The committee investigated allegations of phone hacking after they first surfaced in 2006 and it has since looked at whether it was misled in its initial inquiry by a host of News International executives who pleaded innocence.

Paul Farrelly, a leading member of the committee, told Reuters they hoped to publish the long-awaited report by May 1.

Tom Watson, a member of the committee who has campaigned against Murdoch, told reporters he thought News Corp had become a toxic institution which operated like a shadow state

Two members of the US Coast Guard in Alaska have been found dead, prompting concerns that a killer could have struck at a remote island outpost. A captain at the Kodiak Island Station said they were unsure what happened and a suspect could still be at large. The base and schools in the area were put on lockdown and residents of the island were told to remain vigilant. The names of the victims will be released after their families have been notified, the coast guard said. "It is possible that the suspect remains at large," Commanding Officer Captain Jesse Moore said. "Since we don't have all the details, we strongly advise all Kodiak residents to remain vigilant and to report any suspicious activity to local law enforcement officials." The captain also said the unit was "deeply saddened" to have lost two shipmates. Officials were unable to determine whether the deaths were a double murder or a murder-suicide. "This is a rare occurrence and we are going to do everything possible to ensure we find out exactly what happened," he said. Agents from the FBI have been sent to Kodiak from the town of Anchorage, about 250 miles (402km) away. Kodiak has a population of about 6,300 people.

Ndrieim Sadushi, 41, was last night picked up on an international warrant by police outside his home in Southgate.

An Albanian court found him guilty in his absence of three killings and an attempted murder in the eastern European country in 1997.

At an extradition hearing in Westminster Magistrates' Court today, Sadushi claimed he had been the victim of mistaken identity and was in fact 31-year-old Arjan Kasa.

But district Judge Michael Snow ruled police had got the right man after being told his fingerprints matched those of the convicted killer.

Sadushi, who is said to have used at least six aliases while evading the authorities, will face a life sentence if he is sent back to his homeland.

Prosecutor James Stansfeld said that, in addition to being wanted by the Albanian police, authorities in Italy accuse Sadushi of drug trafficking, passport fraud and controlling prostitutes.

Italian courts sentenced him to 13 years and four months in his absence.

He has been linked to the notorious Kadeshi armed gang, of which all the other leaders have been arrested.

Sadushi is due to appear before Westminster Magistrates' Court today

Hannah Pye, representing the Albanian authorities, said: 'The request for extradition comes from Albania, after he was handed a custodial sentence, following a conviction for five offences.'

‘Those were, the creation and participation in an armed gang, three counts of murder and one attempted murder.

‘For that he was sentenced to life imprisonment, and an appeal against the sentence was upheld by the Albanian appeal court in 2000.’

Officers from the Metropolitan Police’s extradition unit arrested Sadushi outside a property in High Road, Southgate.

The UK Border Agency holds no record of him claiming asylum and he is thought to have entered Britain on the back of a truck in 2000. 

Last year he was one of 14 suspects to have their mugshots released as part of Operation Sunfire, a coordinated effort to bring some of the UK's most wanted fugitives before extradition courts.

Twelve of the suspected murderers, rapists and robbers pictured were from eastern Europe, while the other two were wanted in connection with crimes in Italy and Australia.

Sadushi will return to court on April 25.