An external inquiry is to be held into Greater Manchester Police's prosecution of Kevin Taylor, the businessman involved in the Stalker affair.
Fraud charges against him were dropped in January in the middle of a lengthy trial, after a judge at Manchester Crown Court criticised the handling of the case by detectives.
Mr Taylor (58), who said he was financially ruined by the prosecution, claimed it was launched as a means of discrediting his friend John Stalker.
Mr Stalker, former Deputy Chief Constable of Greater Manchester, was head of the controversial "shoot to kill" inquiry into the Royal Ulster Constabulary.
He was suspended from duty, removed from the investigation and faced an investigation into alleged misconduct because of his links with Mr Taylor, although he was later reinstated by his police authority.
There have been repeated claims of a top-level conspiracy, involving high-ranking politicians and civil servants, to find a means of removing Mr Stalker from the inquiry because of the evidence he was uncovering.
During Mr Taylor's trial, detectives admitted misleading a registrar to gain access to Mr Taylor's bank accounts. The prosecution then abondoned the case against him.
A statement yesterday from Greater Manchester Chief Constable James Anderton said the Director of Public Prosecutions had referred "certain matters" to him after the case.
"After due consideration of these matters involving a detailed analysis by other senior officers of the relevant transcripts of the trial I have decided to ask an individual senior officer from another force to investigate the issues raised by the DPP." he said.
[It would be very helpful for anyone studying Freddie's case to read "Stalker" by John Stalker. The shocking revelations in "Stalker" regarding the conduct, or rather gross misconduct, of the RUC must be undersood in order to accept the conduct, or rather gross misconduct, of the same police force, at the same time, in their dealings with those who plundered Freddie's estate.]