Stephenson Harwood and BCL Burton Copeland are advising as property investors Vincent and Robert Tchenguiz contest their arrest by the Serious Fraud Office (SFO) in connection with the collapse of Icelandic bank Kaupthing.

The brothers yesterday (22 February) won the right to a judicial review of the circumstances surrounding their high-profile arrests last year, after the SFO admitted to mishandling the case.

The lawyers acting for Vincent Tchenguiz (pictured) include Wilmer Cutler Pickering Hale and Dorr partner Stephen Pollard, Ben Emmerson QC of Matrix Chambers and Lord Goldsmith QC, the former Attorney General who is now head of European litigation at US law firm Debevoise & Plimpton.

Stephenson Harwood is advising Rawlinson & Hunter, the trustees of the Tchenguiz Family Trust, and several other related parties in relation to the SFO proceedings. The firm's team includes commercial litigation partner Sean Jeffrey, senior associate Richard Garcia and associate Leonie Parkin, with Alun Jones QC of Great James Street instructed as counsel.

White collar crime specialist BCL Burton Copeland is representing Vincent's brother Robert, with partners Ian Burton and Richard Sallybanks leading the firm's team alongside Alex Bailin QC of Matrix Chambers.

James Eadie QC of Blackstone Chambers and barrister Allison Clare of 18 Red Lion Court represented the SFO, while Fiona Barton QC of 5 Essex Court appeared for the City of London Police.

The SFO obtained search warrants against Vincent Tchenguiz last year as part of an investigation into the collapse of Kaupthing, but has now admitted that errors were made in the way the case was handled.

Charlie Monteith, counsel in White & Case's white collar group, said the error does not necessarily render the rest of the evidence gathered outside the warrant inadmissible.

"The defence would have to prove significant bad faith or improper behaviour by the SFO – or the fact that they could not get a fair trial – for the whole case to be thrown out," he explained.

"If the mistake relates to a smallish area of the investigation, this would not necessarily terminate the whole thing. But a lot depends upon whether the SFO have learnt something from the unlawfully seized warrant evidence that could prejudice a fair trial or amount to an abuse."

The Tchenguiz brothers were among nine people arrested in March 2011 as part of the inquiry into Kaupthing, which came under government control in October 2008 after the board of directors stood down. The SFO is no longer contesting the Tchenguizes' judicial review, which is scheduled to take place over three days in May, but has not admitted the search warrants were invalid.

Eversheds commercial dispute resolution partner Mark Surguy commented: "Corruption prosecutions are difficult to mount. Huge volumes of complex evidence are amassed from a wide variety of sources and the data has to be synthesised and understood. This takes time and a great deal of skill. However, allegations of a criminal nature are hugely damaging and if they are not made good, significant reputational loss can be incurred by the individuals or companies on the receiving end."