In a statement, Denis MacShane said: "I am shocked and saddened that the BNP has won its three-year campaign to destroy my political career as a Labour MP despite a full police investigation which decided not to proceed after investigations and interviews.
"I am glad the committee notes that there is no question of personal gain. Clearly I deeply regret that the way I chose to be reimbursed for costs related to my work in Europe and in combating anti-semitism, including being the Prime Minister's personal envoy, has been judged so harshly.
"I remain committed to work for progressive values, for Britain playing a full part in Europe, and for combating anti-semitism even though I can no longer undertake this work as a Labour MP.
"I am consulting family and friends as I consider my position and study the full implications of the report. I am obviously desperately sorry for any embarrassment I have caused my beloved Labour Party and its leader Ed Miliband whom I greatly admire."
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