Restaurateur Frank Dowling has been cleared of all charges, four years after he was arrested by HMRC officers investigating claims of undeclared VAT and PAYE payments.

Dowling told the Evening Standard that The Crown Prosecution Service had offered no evidence at a court hearing last month following the lengthy probe.

American Dowling moved to Britain in 1997 to work on a property development project in Canary Wharf, subsequently opening three venues in the O2 complex: Union Square, American Bar & Grill and Inc Club.

He told the Evening Standard he was “delighted” that the charges had been “thrown out”, describing them as “ill-founded, ill-conceived and just plain wrong”.

He told the paper: “It has been devastating for my business interests as many third parties decided to treat me as guilty and sought illegal and immoral means to seek commercial advantage, but the truth is out there for everyone to see now.

“There’s a feeling of relief that it is over but also anger at what they have put me through and how much money has been wasted.”

A CPS spokesperson said: “The CPS keeps all cases under regular review in accordance with the Code for Crown Prosecutors. Following a review of this case, prosecutors were no longer satisfied that the evidential stage of the test under the Code was met and therefore made the decision to offer no evidence.”