A poison pen letter has been revealed as a political smear written in the wake of £17m of council funds being trapped in Iceland's collapsed banking system.
The letter, which was emailed to the Paddington, Marylebone and Pimlico Mercury on Sunday, was an attempt to blacken the name of Westminster North Conservative Association's deputy chair Rula Al-Adasani.
The writer, who falsely signed the letter using Ms Al-Adasani's name and address, said poorer people should not be living in Westminster.
Referring to the £17million lost by Westminster Council through the collapse of Icelandic banks Heritage and Landsbanki, the author added: "It's better that money was invested in Icelandic banks and hedge funds than as usual wasted on spending for the poor in Church Street, Westbourne, Harrow Road, Queen's Park and some parts of Maida Vale, Lancaster Gate and Bayswater wards.
"It's Conservative voters' cash and these areas mainly vote Labour. They contribute nothing and should have no say in how Westminster councillors manage Conservative money from Conservative voters in St John's Wood."
Ms Al-Adasani and Westminster North Conservative Association chairman Amanda Sayers strongly denied that she had penned the letter and said they had no knowledge of correspondence.
A spokewoman for the association said that they would not release a full statement unless jounalists did not use Ms Al-Adasani's name.
A police spokesman said no crime was committed by the sender of the letter. He said: "This matter would be placed under the heading of 'identity theft', which is not a crime. All details will be entered onto our intelligence system so we have a record of it should there be any subsequent emails and/or the content of them equates to an offence."