Labour suspended Lord Ahmed today and launched an investigation into claims that he blamed a Jewish conspiracy for his imprisonment over dangerous driving.
The peer allegedly blamed his 2009 prison sentence for sending text messages shortly before his car was involved in a fatal M1 crash in 2007 on Jews "who own newspapers and TV channels."
He allegedly told an Urdu-language broadcast in Pakistan that the judge who jailed him for 12 weeks was appointed to the High Court after helping a "Jewish colleague" of Tony Blair during an important case.
Labour leader Ed Miliband said: "I think that the comments reported by Lord Ahmed are disgraceful.
"There's no place for anti-semitism in the Labour Party and frankly anybody who makes those kinds of comments cannot be either a Labour lord or a Labour MP."