Jeremy Crook, 53, the former European vice-president of software firm Peregrine Systems may be extradited to the US to face fraud charges brought against him by shareholders.

The charges relate to allegations of accounting fraud and an attempted cover-up at the San Diego-based company, which led to a federal investigation in May 2002, after which the group issued a warning about its finances.

Soon after Peregrine filed for Chapter 11 bankruptcy protection, claiming its accounts had been inflated. That triggered a sharp drop in its share price, which wiped $4bn off the value of the company.

It emerged from Chapter 11 a year later and was sold to Hewlett Packard for $425m in 2005.

According to the BBC, Crook and his lawyers have questioned the level of evidence the US Department of Justice has against him, saying he has co-operated with all US inquiries.