The woman who levelled sex allegations against Neil and Christine Hamilton and Barry Lehaney may face criminal prosecution.
Scotland Yard announced yesterday that Mr Lehaney, 61, from Ilford, Essex, would not be prosecuted after he was accused by Nadine Milroy-Sloan, 26, of raping her at his flat. Police had already announced that no charges would be brought against Mr Hamilton, a former Tory minister, and his wife, who were accused by Ms Milroy-Sloan of sexual assault at Mr Lehaney's flat.
Police are continuing their investigations into Ms Milroy-Sloan, a trainee lecturer, who now faces possible charges of perverting the course of justice and wasting police time.
Scotland Yard said the Crown Prosecution Service advised that no further action should be taken against Mr Lehaney. He has lodged a complaint about Ms Milroy-Sloan with the police and is considering suing her.
Nick Freeman, his solicitor, said: "He has mixed emotions, he is feeling extremely relieved but also extremely angry. The [police] inquiry lasted just over seven months under the full glare of publicity."
Mr Freeman said there was a "strong argument" for a change in legislation to allow those accused of rape to have the same protection of anonymity as complainants until an allegation was proven.
Mr and Mrs Hamilton, who were arrested but officially cleared at the end of August, are demanding compensation from the Metropolitan Police and have threatened to sue. They have also threatened to sue Ms Milroy-Sloan for libel.
It emerged after the allegations that Ms Milroy-Sloan, who was paid £45,000 for her story by the News of the World, had made false allegations to the police in the past.
An internal report at Scotland Yard concluded that the investigation into Ms Milroy- Sloan's claims should have been dropped within weeks.
The report is understood to say there was no scientific evidence, there were numerous discrepancies in Ms Milroy-Sloan's story and nothing she said could be corroborated.
The investigation into the Hamiltons led to the highly public arrest of the couple. They said they had a cast-iron alibi – having held a dinner party at their flat in Battersea on the night in question.Reuse content