A BNP member of the London Assembly could be banned for up to six months today for making up details of murders.
An investigation found that Richard Barnbrook, also a councillor in Barking and Dagenham, brought his office and the two local authorities into disrepute.
The row erupted over a video which appeared on his website in September last year and also appeared on YouTube.
In the film he claimed: "In Barking and Dagenham alone three weeks ago, there was a murder of a young girl. We don't know who's done it, her girlfriend was attacked inside an educational institute.
"Again, two weeks ago there was another attack by knives on the streets of Barking and Dagenham where two people were murdered."
According to police figures and fellow Barking and Dagenham councillor Valerie Rush, there were no serious attacks in the area in the three weeks before the film was posted.
A report for the Greater London Authority (GLA) concluded that Mr Barnbrook had been "at the very least dismissive of providing people with correct information and at the most showed wilful disregard for the truth".
In his defence, he said that details of the first death had "come out wrong" and the person was killed outside the area in Newham.
He claimed he spoke "too soon" about the other two "murders", which were attacks that left victims on life support.
The GLA now has a range of options, including a full or partial ban of up to six months or asking for a written apology.