Lib Dem donor faces possible jail term

The man who bankrolled the Liberal Democrats' general election campaign last year is facing a possible jail sentence after pleading guilty to two charges.

Michael Brown admitted perjury and, separately, admitted making a false declaration to obtain a passport, when he appeared at Southwark crown court earlier today.

The 40-year-old gave the Lib Dems £2.4 million last year, but there is no suggestion that the charges have anything to do with the party.

At the hearing today, the Scottish financier pleaded guilty to making false statements in the high court last year, as part of an ongoing case brought by HSBC bank.

The remaining 30 counts against Mr Brown in the private criminal prosecution will lie on the court file.

Separately, the businessman also admitted making a false statement to the Passport Office last November, in claiming he had lost his old passport in a washing machine.

Judge Geoffrey Rivlin said the two counts would normally result in a prison sentence, although Mr Brown will not know until he returns to court in September.

"On the face of it, a custodial sentence would be appropriate," the judge said.

Mr Brown was living in Spain but was extradited from Spain earlier this year at the request of HSBC. He is being held in custody.

The banking group had initially begun a civil action for fraud against Mr Brown and his company, 5th Avenue Partners, in which he signed an affidavit giving information about his trading activities.

But by the end of the last year, HSBC had gathered evidence to show the statements in the affidavit were false. Today Mr Brown admitted one charge of perjury in respect of the affidavit, saying he had made a statement "that he knew to be false".