LORD Levy today denounced the "prejudiced and distorted view" of the cash-for-honours affair presented by leaks to the media.

And Labour's chief fundraiser again denied any breaches of the honours regulations.

Lord Levy's public intervention comes after the Attorney General, Lord Goldsmith, failed to stop The Guardian running a story today saying police were investigating whether Lord Levy had sought to modify information about the affair from No 10 aide Ruth Turner.

Lord Levy's solicitor Neil O'May said the "media-style trial" was placing "an intolerable burden" on the peer and his family.

The Labour peer has been questioned by police on suspicion of conspiracy to pervert the course of justice as well as possible breaches of honours rules.

But Mr O'May said: "Lord Levy categorically denies any wrong-doing whatsoever.

"The current round of articles in the media, which are said to be based on leaked material under consideration by the police, are partial, contradictory, confused and inaccurate."

Earlier, Tony Blair's spokesman said he had "absolutely no reason to believe" No 10 was involved in The Guardian's story.

The latest twist in the tangled affair came after No 10 yesterday specifically denied leaking a story to the BBC about an alleged e-mail sent by Ms Turner and said the story was "fundamentally wrong".