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A US COURT has issued arrest warrants for two Britons after an investigation into an alleged telephone scam that left thousands of American households with a combined phone bill of $30m.

However, the probe, which was carried out by the Federal Trade Commission in Washington, could spark a political turf war with the Federal Communications Commission, which regulates long-distance phone carriers across the US.

Richard Green and Marilyn Shein from London are currently believed to be in Monaco. Last week a US judge demanded their financial records relating to a long-distance phone venture, linked to internet pornography, which has gone badly wrong.

Mr Green …