Arrest warrant issued for millionaire Lib Dem donor after he fails to show up at court on fraud charges

The Liberal Democrats' biggest ever donor has gone on the run just weeks before a multimillion-pound fraud trial.

A judge issued an arrest warrant last night for Michael Brown, a businessman whose company gave the LibDems £2.4million in 2005.

He was due to stand trial in September charged with 18 offences including money laundering, theft, and perverting the course of justice.

But the 42-year-old breached his bail conditions by not appearing for a pre-trial hearing.

He caused controversy after it emerged he bankrolled the LibDems' 2005 election campaign despite not being registered to vote.

Glasgow-born Brown denied all charges during a hearing in June. The theft charges are believed to relate to the tax exile's trading company 5th Avenue Partners.

Other counts are linked to claims that criminal assets were transferred via a Spanish bank and HSBC accounts.

Brown was the subject of an Electoral Commission probe into the fact he was not registered to vote in the UK, despite his donations. But the watchdog later ruled the LibDems did not have to hand back the money.

A LibDem spokesman would not comment on the latest developments, but confirmed the party would be keeping the donation. 

Southwark Crown Court, where Lib Dem donor Michael Brown was due to appear today on 16 charges of fraud

'At all times, we acted in good faith in relation to the receipt and expenditure of these donations.

'All our donations and loans were properly declared to the Electoral Commission,' she said