Lord Edward Davenport, 44, a flamboyant party organiser and property developer from London, faces allegations of swindling his celebrity clients out of £12 million, and is currently on bail.

The magnate allegedly conned well known and wealthy figures out of their money by offering loans of up to £250 million, however, after receiving their ten per cent deposits he then failed to pay out.

Lord Davenport, who is believed to be worth between £100 million and £200 million, was charged with conspiracy to defraud and money laundering when he appeared in court last December, and the trial is ongoing.

The City of London Magistrates’ Court also heard of his alleged involvement in a ‘price ramping’ fraud in the sale of a property in Paul Street, London, which sold at auction for £2.4 million.     

Due to the conditions of his bail he cannot jet off on his usual holiday, as he has been ordered to hand over his passport, and must report to a police station three times a week.

The multi-millionaire complained this week about not being able to visit his properties in Monaco and Bangkok, telling the Daily Mail newspaper: “It’s the first time I had to spend August in London.”

In the past the media have often referred to him as a ‘self-styled Lord’ purely because of the high class life he lives. What many fail to report is his Lord status is actually real, after he inherited the title of Lord of Giffords at the age of 28.

However, Davenport chooses not to use his title and seems more a lord of parties than a man with a peerage. He has been organising parties since he was just 16 years-old, and has also owned and run some of the best known clubs in London, such as SW1, which is now Pacha on Victoria Street.

Davenport currently boasts a property portfolio worth £100 million, but he made his first million in his early twenties from his party company - Gatecrasher - which organises parties at stately homes.

He has hosted a series of sparkling events at his £20 million Portland Place property, in London. The 110-room mansion has been transformed into party central on a number of occasions, opening its doors to celebrities like Naomi Campbell, Cher, Boy George, Kate Moss, and Gisele.

The star-studded events have had unique and adventurous themes, such as pole-dancing parties, masked balls, and even a Courvoisier party complete with a swimming pool filled with 1,000 litres of the expensive brandy.

The party mastermind is hugely popular in the celebrity world, and the gallery on his website contains a colourful collage of celebrities, such as Jean-Claude Van Damme, hotel heiress Paris Hilton and rapper 50 Cent, posing with Davenport at a number of elite events.

But even though his parties are highly rated in the world of showbiz, they don’t seem to have kept him out of trouble.

Last month Westminster council claimed the property shouldn’t be used for commercial purposes, and after a hearing in court the Judge banned him from using the property for any non-residential purposes.

By Dawn Murden