Lord Peter Mandelson repeatedly leaked confidential British government emails to Jeffrey Epstein while serving in Gordon Brown’s Cabinet, new files show.
The Labour peer, who was serving as Business Secretary, shared market-sensitive information with Epstein that the convicted paedophile could have used to make money.
The disclosures included plans for a multibillion-pound EU bailout, Brown’s resignation and the potential sale of government land and property.
Documents released over the weekend suggest that Epstein sent Mandelson US$75,000 ($125,000) and £10,000 ($23,000) to his husband, although the peer claims he has no record of the payments.
The Metropolitan Police has confirmed that it was reviewing allegations against Mandelson of misconduct in public office, an offence that carries a maximum sentence of life in prison.
Brown demanded an investigation into the “disclosure of confidential and market-sensitive information from the then business department during the global financial crisis”.
“Given the shocking new information that has come to light in the latest tranche of Epstein papers, including information about the transfer to Mr Epstein of at least one highly sensitive government document as well as other highly confidential information, I have now written to ask for a wider and more intensive inquiry to take place into the wholly unacceptable disclosure of government papers and information during the period when the country was battling the global financial crisis.”
Tory leader Kemi Badenoch suggested Mandelson may have broken the law and demanded he lose his peerage.
Sir Keir Starmer later said Mandelson should lose his title after bringing the House of Lords “into disrepute”.
The Prime Minister is facing growing questions over Mandelson’s vetting in what has become a major embarrassment for Labour. Starmer appointed him as Britain’s ambassador to the US but then sacked him last year over his friendship with Epstein.
At the weekend, Mandelson announced he had quit Labour to avoid causing “further embarrassment”.
The latest revelations were among a tranche of three million files containing hundreds of email exchanges between Mandelson and Epstein, released by the US Department of Justice.
The documents revealed that, as a serving minister, Mandelson stayed in the American financier’s properties while Epstein was serving jail time for child sex offences.
In one email Mandelson sent Epstein in 2009, the then Business Secretary forwarded an economic briefing for Brown with the caption: “Interesting note that’s gone to the PM.”
The memo, which was written by Nick Butler, a special adviser, and began “Dear Gordon”, contained an assessment of the state of the economy after the financial crisis.
It contained a reference to the British government having “saleable assets in hand”, and Epstein asked Mandelson: “What saleable assets?” He replied: “Land, property I guess.”
Butler told The Times he had “absolutely no idea that Peter was sending emails I had written to anyone outside of government”.
He said: “I am disgusted by the breach of trust, presumably intended to give Epstein the chance to make money.”
Another email chain, sent by Jeremy Heywood, the then No 10 chief of staff, to Baroness Vadera, then Business Secretary, and copied to Mandelson, was also leaked to Epstein. However, the name of the leaker is redacted in files released by the US Department of Justice.
Other emails from 2010 appear to show Mandelson confirming to Epstein the EU’s €500b ($980b) bailout deal – which followed crunch talks with European governments to stave off debt and default fears – on May 9, several hours before it was publicly announced.
Epstein said to Mandelson: “Sources tell me 500 b euro bailout , almost compelte [sic].” The response, from a redacted address, provided confirmation, saying: “Sd be announced tonight.”
Epstein then asked “are you home”, to which he received a reply at 10.14pm saying: “Just leaving No10.. will call”.
Shortly afterwards, a rescue package worth £624b was announced for the 16 eurozone states struggling to finance their debts.
The following morning, on the eve of Brown’s departure from office, other emails showed Mandelson telling Epstein he “finally got him to go today”. Brown resigned on May 11.
The Labour peer said the decision had come following “secret” talks with the Liberal Democrats following a walk along an underground tunnel connecting No 10 and the Ministry of Defence.
Dan Neidle, a lawyer and tax expert, said the email, sent to Epstein at 9.07am, “implies Mandelson leaked price-sensitive information to a Wall Street insider”. Brown’s resignation became public after 7pm and was formally announced the next day.
The Met said it was reviewing “a number of reports relating to alleged misconduct in public office” after Reform UK and the SNP referred Mandelson to police.
Commander Ella Marriott said: “The reports will all be reviewed to determine if they meet the criminal threshold for investigation”.
Downing Street later said the government “stands ready to provide whatever support and assistance the police need”.
Brown said he first raised concerns about Mandelson’s dealings with Epstein on September 10 last year, the day after a Daily Telegraph investigation into their friendship.
The Telegraph disclosed on September 9 last year how Epstein had brokered a deal with Mandelson over the sale of a UK taxpayer-owned banking business. The deal was discussed months after Epstein was released from jail on child sex offences and while Mandelson was Business Secretary.
Sempra Commodities, a joint venture between the taxpayer-owned Royal Bank of Scotland (RBS) and Sempra Energy, was sold to JP Morgan in a deal on which Epstein gave advice to both Mandelson and Jes Staley, a senior executive with JP Morgan who has since been banned from holding senior roles in the UK financial services industry over his relationship with the paedophile.
Separate emails from January 2010 show that Staley had asked Epstein for help to arrange a meeting with either Mandelson or Alistair Darling, the then chancellor, at the World Economic Forum in Davos, Switzerland.
Epstein replied: “I’ve set up you and Peter to meet in Davos with Darling.”
Among the millions of Epstein files released over the weekend were images showing Mandelson in his underwear next to a woman in a white dressing gown.
Emails also revealed the peer secretly gave advice to JP Morgan, via Epstein, on how to lobby and “mildly threaten” the Government to reduce the firm’s tax bill after Lord Darling unveiled a 50% tax on bankers’ bonuses.
He also appeared to have agreed to arrange a tour of No 10 and Parliament for Epstein’s teenage goddaughter in 2009 while the paedophile was serving a 13-month sentence for the solicitation of a minor.
Mandelson asked: “How old?”, to which Epstein said she was 15. “Fine on all,” Mandelson replied.
In 2009, a picture emerged in another email of Mandelson wearing a tracksuit branded with Epstein’s initials, JEE. Epstein sent a dozen contacts, including Ghislaine Maxwell and Staley, links to the picture, saying “interesting outfit” and “front cover of english newspapers”.
The US congressional committee investigating the American Government’s handling of the Epstein files is poised to call Mandelson to give evidence before it. He is likely to be asked about the internal government memos that found their way to Epstein’s inbox.
Senior Tory and Labour politicians called for Mandelson to be stripped of his peerage over the scandal, with their calls backed by Starmer.
His official spokesman said: “The Prime Minister has asked for this to be urgently looked at, and the Prime Minister believes that Peter Mandelson should not be a member of the House of Lords or use the title.
“However, the Prime Minister does not have the power to remove it. He is calling on those in the Lords to work with the Government to modernise disciplinary measures in the House to allow for the easier removal of Lords who have brought the House into disrepute.”
However, Darren Jones, the Chief Secretary to the Prime Minister, rejected calls to bring a bill to strip Mandelson of his peerage.
He told MPs: “It would be better to update those procedures so that they apply to all members of the House of Lords, instead of having to introduce complex hybrid bills for each individual peer who has brought the other place into disrepute.”
Badenoch, the Tory leader, said the allegations “appear to show corruption in public office” and backed the calls to remove Mandelson’s peerage.
She said there was “a lot that needs to be looked into, including investigating how he ever came to be appointed”.
The Tory leader also accused the Prime Minister of “consistently looking the other way when it comes to Mandelson’s past”.
Reform UK leader Nigel Farage said: “It’s another huge embarrassment for the Prime Minister. It shows just how poor his judgment is.”
Labour claimed that disciplinary action had already begun before Mandelson resigned from the party on Sunday night.
A Labour spokesman said: “It is right that Peter Mandelson is no longer a member of the Labour Party. Disciplinary action was underway prior to his resignation. Jeffrey Epstein’s heinous crimes destroyed the lives of so many women and girls, and our thoughts remain with his victims.”
Mandelson did not respond to a request for comment, but his spokesman previously said that neither he nor his husband had “any record or recollection of receiving payments” from Epstein, and questioned whether documentation in the files was authentic.
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