Ben Wegg-Prosser has resigned as chief executive of Global Counsel, the lobbying firm he co-founded with Peter Mandelson, following the release of emails showing the extent of their involvement with convicted sex offender Jeffrey Epstein. The emails revealed that Epstein was consulted on setting up the company in 2010 and that his help was sought to secure clients.
Wegg-Prosser, a former No 10 aide under Tony Blair, stepped down on Friday as the firm faces a crisis. Major client Barclays had already cut ties, and the company has agreed to divest Mandelson's shares, severing all connections between the peer and the firm. Archie Norman, chair of Global Counsel, confirmed the transaction would be completed subject to approvals.
The emails, part of the Epstein files released in the US, show Mandelson asked Epstein for advice on launching Global Counsel and that Wegg-Prosser shared a draft statement with Epstein downplaying their relationship. The statement claimed Mandelson was introduced to Epstein a decade earlier by Ghislaine Maxwell, but the files reveal a much closer association.
Rebecca Park, previously managing director of UK Finance, has been listed as chief executive on the company's website. She is expected to acquire Mandelson's 21% stake, according to the Financial Times. The hedge fund Rokos Capital Management also terminated talks with Mandelson over an advisory role.
The scandal has caused deep unease in Labour, which had considered Wegg-Prosser for the role of investment minister last year. He declined the position for financial reasons.
