Fylde MP Mark Menzies today announced he has quit the Conservatives and will not be seeking re-election to the House of Commons at the general election.
The 52-year-old said it had been a 'very difficult week' following claims he used political donations to pay off 'bad people' who had locked him in a flat.
He pointed to 'pressures on myself and my elderly mother' for his decision to resign from the Tories and stand down from Parliament in the near future.
Mr Menzies had already lost the Conservative whip and been suspended as one of PM Rishi Sunak's trade envoys following lurid newspaper allegations.
Fylde MP Mark Menzies today announced he has quit the Conservatives and will not be seeking re-election to the House of Commons at the general election
This included claims he used political donations to cover medical expenses and pay off 'bad people' who had locked him in a flat and demanded thousands of pounds for his release.
The Tories this afternoon said an investigation had found 'a pattern of behaviour that falls below the standards expected of MPs'.
But a spokesperson added they 'cannot conclude there had been a misuse of Conservative Party funds'.
'The Conservative Party has now completed its investigation into whether there was a misuse of Conservative Party funds,' a statement said.
'The money in question that was sent to Mark Menzies MP was signed off by the two signatories of Fylde Westminster group.
'This body sits outside of the remit of both the Conservative Party and Fylde Conservative Association.
'Therefore we cannot conclude that there has been a misuse of Conservative Party funds.
'However, we do believe that there has been a pattern of behaviour that falls below the standards expected of MPs and individuals looking after donations to local campaign funds which lie outside the direct jurisdiction of the Conservative Party.
'We will therefore be commencing with retraining individuals across the party on how to manage these accounts which fall outside of the remit of the Conservative Party and are introducing a whistleblowing helpline.
'Furthermore, whilst outside of the initial scope of this investigation, there has also been a recommendation that the actions of the MP in question have also potentially breached the Nolan principles of public life.
'This is due to the nature of the allegations made, but also the repetitive nature of these separate allegations. These will be reviewed by the Conservative Party's member governance team.
'We will of course share any information with the police if they believe it would be helpful to any investigation they decide to undertake.
'Suggestions the party has not been seriously examining this matter are demonstrably false as we have worked to protect the identities of all those involved whilst the facts could be established.'
Mr Menzies said: 'It has been an enormous privilege representing the people of Fylde since 2010.
'But due to the pressures on myself and my elderly mother I have decided to resign from the Conservative Party and will not stand at the forthcoming general election.
'This has been a very difficult week for me and I request that my family's privacy is respected.'
Lancashire Police previously said they were 'reviewing the available information' after receiving a letter from Labour chairwoman Anneliese Dodds regarding the case.
More to follow...