If found guilty, the 39-year-old would be placed on the sex offenders' register and could be jailed

The officer, a married father-of-two, was interviewed under caution by private investigators working for the Iraq Historical Allegations Team

Lawyers acting on behalf of Iraqis allege he distributed indecent images of children by showing them to three team members

Ex-interrogator accused of being at the 'heart of a

An Army intelligence officer who discovered child porn on an Iraqi insurgent's phone is under investigation by a taxpayer-funded probe into claims of criminality by British troops.

The retired interrogator, who does not want to be named, said it was 'disgusting' that he had been accused of being at the 'heart of a paedophile conspiracy' for simply doing his job.

Lawyers acting on behalf of Iraqis allege he distributed indecent images of children – found on the mobile phone of the Iraqi prisoner – by showing them to three team members.

The officer, a married father-of-two, was interviewed under caution by private investigators working for the Iraq Historical Allegations Team (Ihat).

If found guilty, the 39-year-old would be placed on the sex offenders' register and could be jailed.

An Army intelligence officer who discovered child porn on an Iraqi insurgent's phone is under investigation (file picture)

Other members of his team have also been quizzed about the incident and could face prosecution, the Mail can reveal. They have no idea when their torment will end as the case is still ongoing.

The newspaper has revealed how the controversial £57million Ihat probe has quizzed hundreds of soldiers after being handed 3,367 claims of wrongdoing by law firms.

No one has yet been prosecuted as a result but soldiers have spoken of their torment of being dragged through multiple inquiries years later after being cleared at the time.

Speaking for the first time about the incident - which happened a decade ago – the former officer said: 'What they are accusing me of is so toxic. It's a horrific allegation.'

'The investigators told me I am at the heart of a paedophile conspiracy. It is disgusting what they have accused me of', he told the Telegraph.

No one has yet been prosecuted as a result but soldiers have spoken of their torment of being dragged through multiple inquiries years later after being cleared at the time

The Iraqi was detained in 2006 after being identified as an insurgent fighting the Mahdi militia that was terrorising local civilians and targeting British soldiers.

Intelligence officers seized his phone and discovered child pornography on it.

The British troops were under intense pressure to find the other members of the Iraqi's network and decided to use the images as leverage.

They threatened to distribute leaflets containing the images as well as a photograph of the suspect if he did not disclose details of his terror cell.

The leaflet was shown to four people.

It is understood the soldiers had no intention of carrying out the threat but produced a mock leaflet to persuade the suspect to talk.

The officer, who now works in finance, was ordered to attend an interview at London's Charing Cross police station in February this year and quizzed by investigators.

The British officer said the plan to use the images to persuade him to reveal crucial details had been approved by superiors.

He said that a video of the subsequent interrogation was sent back to the UK - as were all videos of interrogations - to be scrutinised by headquarters.

He said: 'If there had been a problem then… it should have been picked up 10 years ago.'

Others involved have also been quizzed by Ihat, which is still investigating the incident.

The intelligence officer wrote to Mark Warwick, the head of Ihat, complaining about his treatment.

The officer, who now works in finance, was ordered to attend an interview at London's Charing Cross police station in February this year and quizzed by investigators

In his reply, Mr Warwick wrote: 'I accept your observation that this appears to be a prolonged

investigation and I understand that this may be having a negative effect on you.

'Regrettably in pursuing essential lines of enquiry we sometimes incur delay that is out of our control.'

Ihat are currently investigating 1,009 claims – having thrown out thousands – and the figure is expected to drop to 60 by next summer.

An Ihat spokesman confirmed: 'We have interviewed several people in an investigation into activities in Iraq in 2006.