THREE men who were involved in a fuel tax scam that netted huge profits for the Real IRA are expected to be sentenced later today.

The men, who were unaware of where the money was going, were arrested as part of a Customs and Excise investigation, codenamed Operation Warren, which ended with a dawn raid on a farm in West Ardsley, near Leeds, in November 2001.

The discovery of the red diesel washing plant at Manor House Farm provided a vital breakthrough in the hunt for the terrorist cell behind a series of bomb attacks in London and Birmingham that year.

Anti-terrorist officers were able to swoop on an adjoining farm, which turned out to be the cell's hideout. Five men, including two who worked at the diesel plant, were arrested.

The gang of five were jailed earlier this year after being convicted of terrorist offences following a trial at the Old Bailey.

Haulier Robert Surtees, 46, whose address was given as Badminton Grove, Newton Aycliffe, County Durham; one of his drivers, 53-year-old Peter Brown, whose address was said to be Wynyard Road, Hartlepool; and 42-year-old Alan Aggett, of Cliffe Road, Scunthorpe, all pleaded guilty earlier this year to being concerned in the fraudulent evasion of excise duty. Surtees and Brown are understood to have moved to new addresses.

Roger Birch, prosecuting, outlined to Bradford Crown Court yesterday how Surtees arranged for the supply of more than four million litres of red diesel from County Durham to the farm in West Yorkshire.

Brown was paid £300 to drive the red diesel down to Yorkshire.

Mr Birch told Judge Shaun Spencer that there was a clear inference that the large profits made from the laundering of 4.4 million litres of red diesel were repatriated to Ireland.

Fuel was distributed as far afield as Neath, in South Wales, and London.

Surtees initially believed the red diesel was being used legitimately, but later discovered that the scheme involved "washing it", but when he tried to get out he was subjected to threats.

His barrister, Paul Batty, said: "He wished to get out. Only a few weeks later he received threats that were both real and serious directed, towards him and his family. He was utterly terrified."

Brown's barrister, Richard Reed, said his client had made no profit at all from his involvement because he had continued to receive his weekly wage from Surtees.

He revealed that Brown, who had previously served in the Durham Light Infantry in Ireland, was shocked and upset when he learned about the people controlling the operation and where the funds were going.

Aggett was described by his barrister, Edward Bindloss, as a foot soldier in the operation, being paid £500-a-week as a shift worker at the washing plant.

Judge Spencer will today here further legal arguments about confiscation orders against the three men, and is then expected to pass sentence on them.