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Michael Brown, 45, the convicted Glaswegian who bankrolled the party with £2.4m of stolen money, is being sought by British authorities on the Caribbean island but is currently at large. Brown disappeared from Britain while on parole and was sentenced in his absence to seven years in prison. The disclosure of Brown's bolthole will be an embarrassment for Nick Clegg. His party has refused to compensate Brown's victims, some of whom claim their money went directly into the party's coffers to finance the 2005 election campaign. City of London police detectives have been in talks with the Crown Prosecution Service over how to bring back Brown. The Dominican Republic does not have an extradition treaty with Britain. The Home Office is believed to have approached its government for help in apprehending him. While on the island, Brown has been based in the province of La Altagracia, the easternmost tip of the Republic close to some of its most beautiful beaches. One source with knowledge of Brown said he has lived a low-key but pleasant life. "His businesses have been doing OK. He has lived in a wealthy area, he loves the beaches and he plays golf on some of the world's best courses. It could be worse." Brown, who was using an alias, was held on remand by the Dominican authorities while he was investigated over an oil deal. Court papers from the country's capital in Santa Domingo show he was accused by a Dominican businessman in February of failing to honour a contract for 4,820 tonnes of oil. He was ordered to be held for three months while the investigation continued. Its outcome is not known. It has also been established that he launched a real estate business in 2008 based in the Republic, and has launched a subsidiary in Nassau in the Bahamas. Michael Robert Alexander Brown appeared from nowhere when he approached the Liberal Democrats in November 2004 with a generous offer of money for Charles Kennedy's impending election campaign. The brash, ponytailed Brown claimed to be an offshore trader living in Majorca. His claimed his clients were vetted by US embassy officials. Despite not being a party member, not being registered to vote and living abroad, he was welcomed with open arms by the party's grandees. Money came through his company, 5th Avenue Partners, in four tranches. It remains the biggest donation ever received by the party from an individual. In the general election, the party increased its share of the vote by nearly 4% after the cash was spent on posters and advertising. Brown told journalists that he had given the enormous donation because he liked Kennedy. "Charles is my kind of man. And I like to see a level playing field," he said. Within months, Brown was flying Kennedy across Britain in a private jet and was being invited to dinners in Mayfair. Former Lib Dem insiders say he dazzled them with stories of Gordonstoun public school and St Andrew's University. In fact, he had failed his maths O-level at his local school and completed a City and Guilds in catering at Glasgow College of Food Technology. He had no US government links – although he was wanted in Florida for cheque fraud. Brown was arrested in late 2005 after four former clients came forward claiming he had duped them out of more than £40m in a high-yield fraud. His victims included Martin Edwards, the former Manchester United chairman, who had invested £8m with 5th Avenue Partners. In June 2008, while awaiting trial for theft, false accounting and perverting the course of justice, Brown fled and a warrant was issued for his arrest. In the weeks before he disappeared from his Hampstead bail address in north London, he changed his name on the electoral roll to Campbell-Brown and allowed his hair to turn grey. In his absence the court was told that the political donation was made to impress clients and create an air of importance and influence around Brown. The disclosure of his whereabouts has given hope to Brown's victims who are still owed millions. A copy of the passport that Brown has been using has been obtained by the Guardian. It shows a noticeably older and gaunt Brown, sporting dark hair and a goatee beard, compared with photographs taken four years ago when he was awaiting trial. He is believed to have adopted someone else's real identity which has been obscured at the request of the police. Tony Brown, managing partner at law firm Bivonas which represents US attorney Robert Mann who was lost more than $5m (£3m), said: "This development may allow us to pursue Brown's assets in the Dominican Republic for our client." Mann's legal team was forced last year to drop a high court claim against the Lib Dems for the return of around $600,000 after running out of funds. He hopes that if Brown is returned to Britain, any subsequent court case could cause further uncomfortable questions for the party.The Liberal Democrats have maintained that the money was received in good faith and have been cleared by an Electoral Commission inquiry into Brown's donations. A police investigation has been launched this week into how Brown fraudulently obtained a passport. A spokesman for City of London police declined to comment. The Home Office declined to comment.
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Reuters
A community with a voracious appetite for scandal, it does appear we are experiencing Murdoch news fatigue. Like frogs in boiling water, we are losing sensitivity to the barrage of sensational News Corp instalments flowing from the phone hacking affair. On Tuesday, two former News International managers - head of legal affairs Tom Crone and News of the World editor Colin Myler - told a British parliamentary committee that James Murdoch had been made aware of widespread phone hacking despite his written statement to the contrary. The testimony was another milestone in the series of explosive revelations of systemic criminal phone hacking which had been going on for years but allegedly covered up by a corporate and police conspiracy. Advertisement: Story continues below Since the hacking affair was blown open, there has been a myriad of developments from the company, government and police - many of them astonishing. Much of this is highly significant to the Murdoch empire, and the ramifications have been difficult to digest. This shameful episode has changed the News Corp organisation and Rupert Murdoch's management style. In a corporate sense, the decision by Murdoch to undertake a $US5 billion ($4.7 billion) share buyback is, on its own, momentous. Aggressive expansion of the News Corp empire has been a hallmark of Murdoch's modus operandi. The decision to undertake a capital management program that allocated cash to shareholders rather than to acquisitions marks a major departure. The focus of News Corp's strategy in the past has been on raising funds and using available cash to expand, and avoiding the dilution of Murdoch family control. This was never more evident than in the creation of News Corp non-voting stock and the move to domicile the company in the lax regulatory jurisdiction of Delaware. The only other incidence of Rupert Murdoch bowing to outside pressure was in the early 1990s, when the Pittsburgh Bank famously forced News Corp to the brink of bankruptcy by threatening to block the rollover to a new debt package. News Corp has otherwise been run by Rupert Murdoch and in his way. The notion of appeasing minority shareholders is new to Murdoch, as is divorcing the hard-wired nepotism.
The documents revealing the cosy relationship between top British and Libyan intelligence officials are embarrassing not just because they confirm Britain's rendition of Islamist terror suspects, including Abdel Hakim Belhadj, the Transitional National Council's new security commander in Tripoli, but also because they lend credence to Britain's reputation as a slippery operator in the Middle East. David Cameron's support for the TNC was meant to gain souk cred by tying Britain's banner to the spirit of the Arab Spring. Cameron has said the new documents should be examined by the independent Detainee Inquiry, chaired by Sir Peter Gibson. They show how keen Tony Blair was to bring Gaddafi into the fold following Saddam Hussein's fall in April 2003 and to trade an end to Libya's pariah status in return for help in the war against terrorism. There was little wrong with that. What is sickening is the extent to which Britain sought to ingratiate itself by delivering up Gaddafi's opponents. No less disturbing is the manner in which Britain's cosying up to Gaddafi has been represented as a mistake by misguided individuals, for which institutions such as the London School of Economics have suffered. Perhaps the most fascinating new document was sent on March 18, 2004 to Musa Kusa, head of Libyan intelligence, by Mark Allen, MI6's director of counter-terrorism, who crowed about Belhadj's rendition while arranging a forthcoming visit by Blair to Libya. A week later Gaddafi welcomed the British PM in his Tripoli tent (as requested by Allen for publicity reasons). It is difficult to say who was the greater showman: the unctuous Blair or Gaddafi joking how his Third Universal Theory, the basis of his Green Book, paved the way for Blair's Third Way politics. Within two months, Allen was pipped as the next MI6 head by John Scarlett, who, two years earlier, as chief of the Joint Intelligence Committee, had backed Blair's argument that Saddam had dangerous weapons of mass destruction. Allen left the SIS shortly afterwards. For Middle East watchers, an interesting outcome has been these glimpses of intelligence machinations in this most secretive of regions. A Le Carré of the al Qaeda conflict will surely follow. It is Cameron who now has to deal with the practical consequences. The ultimate fate of Gaddafi and his family is out of his hands. But Britain has tough decisions to make about other players, including Musa Kusa, who defected from Libya in March, came to Britain, and was last heard of in a Qatar hotel. In 1980 he was expelled from Britain for advocating the murder of Libyan dissidents. For this and his wider role in Libyan terrorism, many powerful voices argue that he should be tried in Britain. But, even at this stage, it may be that he has too much to reveal. More immediately, the Prime Minister needs to assess the role of former Islamists such as Belhadj in the new regime and take appropriate measures. It will not be enough to kick the rendition issue into the long grass by referring it to the Gibson inquiry, which has yet to begin its work. If David Cameron hoped for an easy ride in post-Gaddafi Libya, these papers have disabused him of that notion.
The News International chairman has reportedly cancelled a trip to Asia to monitor first-hand what is said at the select committee hearing. When James Murdoch appeared with his father Rupert before the Culture, Media and Sport committee in July, he was asked if he knew about a document known as the "for Neville" email. This email has been seen as critical to the hacking inquiry. It indicates that the practice of hacking was more widespread than News International originally admitted. James Murdoch said he was unaware of the document at the time he sanctioned a payout to the Professional Footballers' Association chief Gordon Taylor, whose phone was hacked by the News of The World. His denial of knowledge of the email was subsequently contradicted by Colin Myler, the NOTW's last editor, and the paper's former lawyer Tom Crone, both of whom will give their side of the story to the committee. Daniel Cloke, ex-HR director at NI, and Jon Chapman, NI's former head of corporate and legal affairs, are also due to appear. Mark Lewis, who represented Mr Taylor when he won his payout from the NOTW, said if today's evidence finds James Murdoch knew about the email it could be the end of him.
Four former News International executives will face a fresh round of questioning from MPs over the phone-hacking scandal. The Commons Culture, Media and Sport committee will quiz the News of the World's former editor Colin Myler and ex-legal manager Tom Crone after the pair publicly challenged evidence given by James Murdoch over his knowledge of the illegal practice. News International's former director of legal affairs Jonathan Chapman and Daniel Cloke, former group HR director, will also appear before the committee as the probe into the scandal is resumed following the summer recess. Mr Myler and Mr Crone have been summoned before MPs for the second time after publicly disputing claims made by Mr Murdoch earlier in the Parliamentary inquiry. The News International chairman told the committee he was not made aware of an email in 2008 indicating that the practice of illegally intercepting voicemails was not confined to a single "rogue" reporter. But the two former Sunday tabloid executives insist that they told him about the message in June of that year. The panel of MPs could now recall Mr Murdoch "depending on their evidence under questioning". Committee chairman John Whittingdale said the latest round of questioning was an attempt to uncover the truth in the "continuing difference in the accounts of James Murdoch and Tom Crone and Colin Myler about whether or not James Murdoch was aware of the so-called 'for Neville' email". The 2005 email contained transcripts of hacked phone messages and was headed "for Neville", in an apparent reference to the News of the World's then-chief reporter Neville Thurlbeck. Its existence came to light in April 2008 when Professional Footballers' Association chief executive Gordon Taylor brought a damages claim against the paper over the interception of his voicemail.
