Fugitive Lib Dem donor tracked down to Caribbean island

Michael Brown, the Glaswegian who became the Lib Dems’ biggest donor, has been found in hiding while living under a false British identity.

Brown, 45, is being sought by British authorities, but is currently at large on the Caribbean island. His whereabouts have been a mystery after he disappeared from Britain while on parole and was sentenced in his absence to seven years in prison.

City of London Police Detectives are in contact with the Crown Prosecution Service over how they can bring Brown back to the UK.

The Dominican Republic does not have an extradition treaty with Britain. The Home Office is believed to have approached the Dominican Republic’s government for help in apprehending him.

The re-emergence of the Brown case will be embarrassing for the deputy prime minister Nick Clegg. Brown first came to prominence when he approached the party with an offer of money for Charles Kennedy’s 2005 general election campaign.

He claimed to be an off-shore trader living in Majorca. He was welcomed by the party, despite not being registered to vote in Britain or being a Lib Dem member. Money came through his company 5th Avenue Partners in four tranches.

He was arrested in 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.

Yesterday it emerged he has been living in a wealthy area in the province of La Altagracia on the island.

One source with knowledge of the Glaswegian said: “His businesses have been doing OK. He loves the beaches and he plays golf on some of the world’s best courses. It could be worse.”

When he became involved with the Liberals he told journalists that he had funded the party because he liked Kennedy.

“Charles is my kind of man and I like to see a level playing field,” he said.

He flew Kennedy across Britain in a private jet.

Lib Dems say he told them he was educated at Gordounstoun, the public school attended by members of the Royal Family and took a degree at St Andrews University.

The reality was quite different. He had failed his maths O level at his local school in Glasgow.

He completed a City and Guilds in catering at Glasgow College of Food Technology. He was also wanted in Florida for cheque fraud.