AMERICAN investigators are examining the activities of two individuals in the UK who allegedly conspired with executives of Wembley, the gaming company, to bribe US officials.

Nigel Potter, chief executive of Wembley, was accused yesterday of plotting to bribe officials in an attempt to expand the company??s gambling complex in Rhode Island, the northeast American state.

Shares in Wembley collapsed after Mr Potter and Dan Bucci, an executive in the US, were accused of proposing a $4.5 million (??2.8 million) bribe, in a 22-count indictment issued by the Rhode Island district court.

The indictment mentions several times other unnamed co-conspirators in the UK who may have been involved in the alleged corruption.

Mr Potter and Mr Bucci have stood down temporarily in order to fight the charges. They could each face up to five years in prison and a $250,000 fine. The men are due to appear in court in Rhode Island next Friday.

Wembley is accused of planning to bribe John Harwood, one of Rhode Island??s most important politicians, and other officials, in order to win influence with the state??s Lottery Commission.

The company, former owner of the famous London football stadium, is also accused of wanting to block an attempt by the Narragansett Native American tribe to open a rival casino complex.

The indictment appears to accept that no money changed hands but alleges that Mr Potter and Mr Bucci drew up proposals to pay bribes, disguised as retainers, to Mr Harwood??s law firm over a six-year period. Neither Mr Harwood nor the firm he runs, McKinnon & Harwood, is accused of any wrongdoing in the indictment.

McKinnon & Harwood, which had been working for Wembley for about ten years, said yesterday that it had never been offered bribes or asked to use political and legislative influence.

The indictment mentions several faxes between Mr Bucci and Mr Potter that investigators believe point to a bribery plan. The indictment also refers to several faxes that allegedly mention ??two co-conspirators in the United Kingdom?? in addition to Mr Potter.

One of these faxes allegedly mentions paying McKinnon & Harwood ??a $1 million retainer for four years, without strings??. Another fax allegedly mentions the ??arrangement?? under which the law firm might accept the offer.

Claes Hultman, chairman of Wembley, who will assume the role of chief executive, said: ??The board of Wembley believes that no US laws were broken, nor was there any intention to break any US laws.

??No payment was approved and no payment was ever made and we remain of the view that these allegations are without foundation. The indicted executives have the full support of Wembley.?? The company declined to comment on the ??co-conspirators?? claim.

Wembley??s shares fell 21.5 per cent to 520p. The Rhode Island complex accounts for the bulk of Wembley??s revenues and the company is seeking permission for a big expansion in Colorado.