Criminal proceedings against former MP Michelle Thomson will not go ahead due to ‘an absence of sufficient credible and reliable evidence’.
Ms Thomson was reported to prosecutors last December following a police investigation into alleged mortgage fraud.
The former SNP MP, who has always denied any wrongdoing, said she had been “completely exonerated”.
She was one of five people named in the report sent to Scotland’s Crown Office and Procurator Fiscal Service.
A Crown Office spokesman said: “The procurator fiscal received a report concerning four men aged 48, 56, 59 and 59, and one woman aged 51, in relation to alleged incidents between June 16 2010 and July 26 2011.
“After careful consideration of the facts and circumstances of the case, Crown counsel concluded there was an absence of sufficient credible and reliable evidence and there should be no criminal proceedings at this time.”
In a statement, Ms Thomson said: “Yesterday I received news from the Crown Office that confirmed I have been completely exonerated by the police investigation into a solicitor I used in 2010.
“I am eternally grateful to my SNP colleagues in Westminster who supported me so strongly throughout this time.
“I also thank Police Scotland and the Crown Office for their courtesy and professionalism.
“I thank my friends and supporters who gave me constant encouragement throughout and above all, I am indebted to my family and acknowledge that the past two years have been very difficult for them too.
“I made clear before I entered politics that I wished to use my skills, drive and experience to help shape a better Scotland and that desire remains as strongly as it did when I became very involved in the 2014 independence referendum. However, for the time being this will need to take a different form.
“I now intend to take a few days of reflection to consider my next steps.”
Ms Thomson, who was elected as the SNP MP for Edinburgh West at the 2015 general election, resigned the party whip when police launched their investigation into the allegations later that year.
It centred around alleged irregularities with property deals carried out on her behalf.
She was linked to deals involving Christopher Hales, a solicitor who was struck off by the Scottish Solicitors’ Disciplinary Tribunal (SSDT) for professional misconduct involving 13 transactions in 2010 and 2011.
Prosecutors instructed police to carry out an investigation into ‘’alleged irregularities’’ relating to deals in the year 2010/11 following a complaint by the SSDT.
Ms Thomson had been sitting as an independent MP until the general election in June.
She announced she was standing down after being told she was not eligible for selection as the SNP’s candidate.