Former British ambassador Peter Mandelson was arrested Monday at his London home on suspicion of misconduct in public office linked to his relationship with late financier Jeffrey Epstein. His arrest has intensified pressure on Prime Minister Keir Starmer, who appointed him to the diplomatic post despite warnings about his friendship with the convicted sex offender. The arrest came four days after former Prince Andrew was taken into custody on similar suspicions, among the most dramatic consequences of more than 3 million pages of Epstein-related documents released last month by the U.S. Justice Department.
The investigation centers on allegations that Mandelson shared sensitive government information with Epstein and sought to influence government policy on his behalf, raising questions about Starmer’s judgment in appointing him to the diplomatic role.
The arrest and investigation
Mandelson was held for more than nine hours before being released early Tuesday morning. The investigation continues.
His lawyers said he had voluntarily agreed to speak with police next month and that his arrest was based on a “baseless suggestion” that he planned to flee the country.
“There is absolutely no truth whatsoever in any such suggestion,” the Mishcon De Reya law firm said in a statement. “Peter Mandelson’s overriding priority is to cooperate with the police investigation, as he has done throughout this process, and to clear his name.”
Allegations of misconduct
According to documents released by the Justice Department, Mandelson appears to have sent Epstein, whom he referred to as his “best pal,” sensitive government information that could potentially influence markets.
One internal government report discussed possibly selling government assets to raise money for the United Kingdom after the 2008 global financial crisis. Mandelson also appears to have told Epstein he would lobby other members of the government to reduce a tax on bankers’ bonuses.
Payment records suggest Epstein gave Mandelson or his husband, Reinaldo Avila da Silva, $75,000 in 2003 and 2004. Mandelson said he had no recollection of receiving that money, questioned the authenticity of bank statements, and believed the allegations were false.
Political career and appointment
Mandelson has been a major player for decades in the center-left Labour Party, known as a skilled political operative dubbed the “Prince of Darkness” for his cunning and ruthlessness.
He helped the party return to power in 1997 as “New Labour” under Prime Minister Tony Blair and served in senior positions until 2001. He served again, under Prime Minister Gordon Brown, from 2008 to 2010. Between these posts, he was the European Union’s trade commissioner.
Starmer appointed him as ambassador to Washington last year for his trade expertise. Mandelson helped reach a deal in May that spared Britain some of President Donald Trump’s tariffs.
Fallout and resignation
Starmer fired Mandelson in September when his email exchanges indicated he maintained a friendship with Epstein after Epstein’s 2008 conviction for sex offenses involving a minor.
The latest trove of Justice Department documents led Mandelson to quit the Labour Party earlier this month to avoid causing “further embarrassment.” Days later, he resigned his seat in the House of Lords. Although he stepped down from the House of Lords, he keeps his title as Lord Mandelson.
It would require legislation to remove his title, something that has not been done since the First World War when several lords were stripped of their titles for siding with Germany.
Global Counsel, the lobbying firm he co-founded, collapsed into bankruptcy Friday after clients cut ties due to his Epstein connection.
Some have called on Starmer to resign over his judgment in appointing Mandelson. Starmer narrowly avoided being toppled two weeks ago and has apologized, saying Mandelson lied about his ties to Epstein.