Lord Peter Mandelson, the former British cabinet minister and one-time UK ambassador to the United States, has been arrested on suspicion of misconduct in public office, the Financial Times reported. The arrest comes amid allegations that Mandelson leaked confidential UK government memos to convicted sex offender Jeffrey Epstein and accepted cash from the American financier.

The Metropolitan Police confirmed on Monday that a 72-year-old man was taken into custody at his Camden home and transported to a London police station for questioning. Two prior searches of Mandelson’s properties had already been conducted as part of the ongoing investigation. Mandelson has denied any wrongdoing.

Mandelson, a key architect of New Labour alongside Sir Tony Blair and Gordon Brown, served at the highest levels of government, including stints as cabinet minister, European trade commissioner, and UK ambassador to Washington. His arrest represents a dramatic fall from grace for a politician long regarded as a strategic force in British politics.

The arrest follows revelations from the latest tranche of the so-called Epstein files, released by the US Department of Justice in January. The documents indicate that while serving as UK business secretary and de facto deputy prime minister, Mandelson provided Epstein with sensitive government information in 2009 and 2010. This included details of a €500 billion EU bailout and a Downing Street memo outlining plans for a £20 billion asset sale and tax adjustments, Financial Times reported.

The Cabinet Office has forwarded its internal review of Mandelson’s emails to Epstein, as well as the procedures controlling market-sensitive information, to the Metropolitan Police. The FT also revealed that in 2010, while still a minister, Mandelson lobbied US officials on behalf of Epstein and JPMorgan executive Jes Staley, using talking points related to banking regulation and financial crisis reforms.

Financial exchanges between Mandelson and Epstein also came to light. The DOJ files show Epstein transferred $75,000 to Mandelson in 2003–2004, while sending additional payments in 2009–2010 to Mandelson’s then-partner, Reinaldo Avila da Silva, now his husband. Mandelson has claimed he does not recall receiving the $75,000 but confirmed Epstein’s payments to Da Silva.

Prime Minister Sir Keir Starmer has faced criticism for appointing Mandelson as UK ambassador to the US in 2024, despite knowledge of the peer’s ongoing association with Epstein, who had been convicted for soliciting prostitution from an underage girl in 2008. Starmer stated that Mandelson “lied repeatedly” about the nature of his relationship with Epstein.

Officials are preparing for political fallout as tens of thousands of documents concerning Mandelson’s conduct and ambassadorial appointment are set to be released. Some materials will remain withheld due to their involvement in the ongoing police investigation.

If convicted, Mandelson could become the first former UK minister found guilty of misconduct in public office—a common-law offense that carries a potential life sentence. Meanwhile, the lobbying firm Global Counsel, co-founded by Mandelson and counting clients like TikTok, JPMorgan, and Palantir, entered administration last week following a client exodus prompted by the Epstein revelations, Financial Times reported.