SWFL.io - Local NewsLONDON (AP) — Former U.K. ambassador to the United States Peter Mandelson, an influential British political figure, is under investigation for alleged misconduct in public office linked to his relationship with the convicted sex offender Jeffrey Epstein.
Mandelson's ties to Epstein have threatened the leadership of Prime Minister Keir Starmer, who appointed the veteran statesman to the diplomatic post despite warnings about his friendship with the disgraced financier.
Mandelson's arrest came four days after the former Prince Andrew was taken into custody on similar suspicions, and their arrests are among the most dramatic consequences of the more than 3 million pages of Epstein-related documents released last month by the U.S. Justice Department.
Mandelson was arrested Monday at his London home in a wealthy area next to Regent's Park.
He appears to have sent Epstein, whom he referred to as his “best pal,” sensitive government information that could potentially influence markets when he was a senior minister in the British government in 2009.
One internal government report discussed possibly selling government assets to raise money for the U.K. after the 2008 global financial crisis. He also appeared to tell Epstein — who died by suicide in a New York prison in 2019 — he would lobby other members of the government to reduce a tax on bankers’ bonuses.
Payment records suggest Epstein gave Mandelson or his husband, Reinaldo Avila da Silva, $75,000 in 2003 and 2004. Mandelson said he had no recollection of receiving that money, questioned the authenticity of bank statements and believed the allegations were false.
Mandelson was released early Tuesday morning after more than nine hours of questioning. He has previously denied wrongdoing and hasn’t been charged, though the investigation is continuing.
Mandelson’s lawyers said Tuesday that he had voluntarily agreed to speak with police next month and that his arrest was the result of a “baseless suggestion” that he planned to flee the country.
“There is absolutely no truth whatsoever in any such suggestion,” the Mishcon De Reya law firm said in a statement. “Peter Mandelson’s overriding priority is to cooperate with the police investigation, as he has done throughout this process, and to clear his name.”
Mandelson has been a major player for decades in the center-left Labour Party, known as a skilled political operative dubbed the “Prince of Darkness” for his cunning and ruthlessness.
He helped the party return to power in 1997 as “New Labour” under Prime Minister Tony Blair and served in senior positions until 2001. He served again, under Prime Minister Gordon Brown, from 2008 to 2010. In between, he was the European Union’s trade commissioner.
Financial or ethical allegations led him to resign twice from Blair's government. He acknowledged mistakes but denied wrongdoing.
Starmer tapped him as ambassador to Washington last year for his trade expertise and he helped reach a deal in May that spared Britain some of President Donald Trump's tariffs.
Starmer fired Mandelson in September when his email exchanges indicated he maintained a friendship with Epstein after Epstein's 2008 conviction for sex offenses involving a minor.
The latest trove of documents led Mandelson to quit the Labour Party earlier this month to avoid causing “further embarrassment.” Days later, he resigned his seat in the House of Lords.
Although he stepped down from the House of Lords, he keeps his title as Lord Mandelson.
It would require legislation to remove his title, something that hasn’t been done since the First World War when several lords were stripped of their titles for siding with Germany.
Global Counsel, the lobbying firm he co-founded, collapsed into a form of bankruptcy Friday after many customers cut ties because of his connection to Epstein.
Some have called on Starmer to resign over his judgment in appointing Mandelson. Starmer narrowly avoided being toppled two weeks ago and has apologized, saying Mandelson lied about his ties to Epstein.