Lord Mandelson resigns from Labour Party after claims he received $75,000 from Jeffrey Epstein: Peer pictured in his pants says he wants to avoid ‘further embarrassment’

Lord Peter Mandelson resigned from the Labor Party to ‘avoid further embarrassment’ following allegations that he received $75,000 from Jeffrey Epstein while he was an MP.

The peer, who was removed from his post as US ambassador last year over his links to a pedophile, was featured in a new tranche of documents released by the US Department of Justice on Friday.

Bank disclosures show that Epstein made three $25,000 transactions between 2003 and 2004, citing Lord Mandelson.

Separate emails between the two men show that in 2009, Epstein personally wired $10,000 to Lord Mandelson’s current husband, Reinaldo Avila da Silva, to fund an osteopathy course and other expenses.

An extraordinary photograph has also emerged showing Lord Mandelson standing in his underpants and apparently chatting with a woman wearing a white bathrobe.

The former Labor Cabinet minister points to a computer tablet in what is believed to be a room in Epstein’s New York mansion.

Lord Mandelson said he did not remember receiving the payment or taking the photo. There is no allegation of wrongdoing, and he has consistently denied any sexual misconduct or awareness of Epstein’s crimes.

But in an update on Sunday evening, the peer said she had written to Labor Party general secretary Hollie Ridley saying she was giving up her membership.

In his letter, he said: ‘This weekend I became even more involved in the understandable anger surrounding Jeffrey Epstein, and I regret and am sorry about that.

A photo published in December shows Lord Mandelson (left) with Jeffrey Epstein (right) and a birthday cake.

Lord Mandelson (pictured with Keir Starmer last year) was sacked as US ambassador last September after his ties to Epstein were revealed.

‘Allegations that he made financial payments to me 20 years ago, which I believe to be false and of which I have no record or recollection, need to be investigated by me.

‘I do not wish to cause further embarrassment to the Labor Party by doing this and therefore I am withdrawing my membership of the party.’

Documents released on Friday show Lord Mandelson suggesting to Epstein in 2009 that he lobby the UK government over bankers’ bonuses.

An email dated December 15, 2009, allegedly from Epstein, reads: ‘There is a real chance of paying the tax only on the cash portion of the bankers’ bonus.’

The response from Lord Mandelson appears to be: ‘As I explained to Jes last night, I’m trying to fix it. ‘He’s digging for treasure, but I’m ready for the action.’

The emails suggest his counterpart, the then business secretary, was prepared to lobby the Government over the so-called ‘super tax’ introduced by then-chancellor Alistair Darling at the beginning of December 2009 to restrict bank profits being used to pay huge bonuses to bankers in the wake of the financial crisis.

Following Lord Mandelson’s resignation from the party, a Labor spokesman said: ‘Labour takes all complaints seriously and they are investigated in accordance with our rules and procedures.’

The Conservatives have called for a ‘full and detailed independent investigation’ into Lord Mandelson’s appointment as US ambassador following his resignation from the Labor Party.

A Conservative Party spokesman said: ‘Lord Mandelson is completely disgraced. But Keir Starmer lacked the backbone to act and allowed Mandelson to resign from the Labor Party rather than fire him.

‘Keir Starmer and his chief of staff appointed Mandelson as ambassador despite his relationship with Epstein and then refused to act even as the mountains of evidence against him grew.

‘Given the Prime Minister’s appalling lack of judgment and involvement in the Downing Street operation, a full and detailed independent investigation is now required.’

In a remarkable photo, Lord Mandelson appears standing in his underpants, chatting with a woman wearing a white bathrobe

A source close to Lord Mandelson said his peer (pictured) did not remember the photo being taken and had no idea where it was taken or who took it (file image)

Lord Mandelson’s resignation came after her Brazilian husband, Reinaldo Avila da Silva, was also named in the Epstein files on Friday.

Da Silva emailed Epstein on September 7, 2009 – two months after the pedophile was released from prison after serving 12 months of an 18-month sentence for child sex crimes – asking for money for an osteopathy course.

At the time, Mandelson was trade minister and had an affair with Da Silva. The couple married in 2023.

Da Silva wrote: ‘Last week I sent you several emails regarding my osteo course expenses including fee, anatomical models and laptop, if you can help me with this. I hope you got these.

‘I have just managed to speak to the osteoporosis school fees office and confirmed that my annual fee is £3,225. They accept bank transfer and details are as follows.’

Epstein immediately responded: ‘I will transfer your loan amount immediately.’

Mandelson emailed Epstein, saying: ‘Remind him that this should be a loan to avoid gift tax reporting.’

Da Silva thanked Epstein days later (September 17), writing: ‘Thank you for the money that came into my account this morning.’

In April 2010, da Silva shared his banking information with Epstein again, and Epstein forwarded the email to his accountant with the instruction to “send $13,000.”

In another email, Epstein wrote: ‘Send 2k a month to Reinaldo.’

In July 2009 – while he was still serving a prison sentence on a day-release program – Epstein wrote to Mandelson: ‘You didn’t call me. I spent an hour with Rinaldo…(sic)’

An apologetic Mandelson responded: ‘I was engrossed in Afghanistan… Thanks for talking to Reinaldo. This helped him (and therefore me) a lot. Now you see the problems. I cannot discuss these issues with him in any way. He’s not listening. I’m doing the Sunday media, I’ll call you later. Thanks again xxx’

Epstein pictured in Cambridge in 2004

Mandelson’s friendship with Epstein began around 2002 and continued until 2011.

During this time, Mandelson served as a Cabinet minister in both the Tony Blair and Gordon Brown governments.

The former ambassador was sacked last September after Epstein’s 2003 ‘birthday book’ included a message in which Mandelson called the pervert his ‘best friend’.

“I think of you a lot,” Mandelson told Epstein, advising him to “fight for early release” from his prison sentence.

Flight records show Mandelson flew on Epstein’s private jet, dubbed the ‘Lolita Express’, and stayed at his homes in New York, Palm Beach and his private island in the Caribbean.

Previously released photos showed Mandelson in a bathrobe and another in a swimsuit.

Mandelson apologized repeatedly for his friendship with the pedophile and left the House of Lords on leave.

Critics said he should be stripped of his rank and expelled from the Labor Party.

He issued a statement on Friday saying: ‘I made a mistake in believing after Epstein’s conviction and continuing my relationship with him afterwards.

‘I publicly apologize for doing this to the women and girls who suffered. I was never guilty or complicit in his crimes. Like everyone else, I learned the real truth about him after his death.’

Epstein died by suicide in prison in 2019.