POLICE investigating the Liberal Democrats’ biggest donor have traced the party’s £2.4 million gift back to one of four investors in his company, The Times has learnt.

City of London Police have followed the trail as part of an investigation into Michael Brown.

They believe that the money came from one of four investors who gave money to Brown’s trading company, 5th Avenue Partners, in 2005.

The four investors were Martin Edwards, the former Manchester United chairman, Chinese cosmetics moguls Kevin So and Yan Lucy Lu, and Robert William Mann, a retired Los Angeles lawyer.

Police are certain that the same company then gave the Lib Dems the donation in three tranches between January and April 2005.

Three of the four investors were foreign, raising the possibility that the Lib Dems have in effect been given a foreign donation, which is against party funding rules.

Lawyers for all four investors have been assisting the police investigation. In April, they wrote to the Lib Dems saying that they believe that the gift was originally theirs, and asked for its return. It is understood that the party have fully co-operated with the inquiry.

Police successfully applied for a court order in June ordering the party to hand over all documents related to the donation.

City of London police are awaiting a lorry-load of computer files, documents and files that were impounded by police in Majorca, where Mr Brown owns at least three properties.

The documents are expected to reveal more information regarding the wherabouts of his money and his Swiss and British bank accounts.

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