Lib Dem donor stole millions

Michael Brown, 42, who was tried in his absence after skipping bail, posed as an international bond dealer, pretended his father was a Lord, claimed connections with royalty and promised investors staggering returns of up to 50%.

His numerous lies, including claims he had clients "vetted" by US embassy officials and Special Branch before accepting their money, helped him pocket nearly £8 million from ex-Manchester United chairman Martin Edwards.

The former football chief was one of an international array of victims who gave the Glasgow-born businessman £36 million, of which a record £2.4 million was donated to the Lib Dems' 2005 General Election war chest.

While the Electoral Commission decided it was "reasonable" for the party to regard his seeming generosity as "permissible", Brown's conviction for theft and other offences will almost certainly heap further embarrassment on them.

Liberal Democrat leader Nick Clegg said: "We took that money in good faith, everyone recognises. We did all the due diligence checks we could have done, totally unaware of the crimes of which Michael Brown has now been indicted. Beyond that, I can't comment."

The crooked businessman - who will not be sentenced until he is caught - channelled the gift through a company called 5th Avenue Partners.

His barrister, Julian Bevan, QC, told London's Southwark Crown Court his client had done nothing wrong.

But the jury of three men and nine women - which was not allowed to hear about the defendant's previous convictions for dishonesty - decided Brown was lying.

He was unanimously convicted four counts - two thefts, one of furnishing false information and one of perverting the course of justice between February 9, 2005 and April 17, 2006.