Convicted fraudster Peter Foster has apologised to the British Prime Minister and his wife and has denied attempting an elaborate sting on them.
He issued the public apology during a prepared statement this afternoon. Mr Foster also said Mrs Blair had never interfered in his deportation case.
He also claimed it was former footballer Paul Walsh, a fellow shareholder in a company called Renuelle, who threatened to reveal he had helped Mrs Blair buy two flats in Bristol.
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Peter Foster arrives to give a live televised statement in London
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Mr Foster, whose dealings with Mrs Blair have sparked two weeks of turmoil for Downing Street, said: "The notion I was attempting some elaborate sting on the Blairs is laughable.
"I apologise to Tony and Cherie for the mess a little help from your friends can get you in to. I know that intentions on both sides were always honourable".
He portrayed himself as the victim of "the most extraordinary character assassination" in the "Cheriegate" affair.
He claimed he had scrupulously avoided meeting Mr Blair but he insisted his intentions were honourable and that he was still "nuts" about his girlfriend, Ms Carole Caplin, Mrs Blair's confidante who involved Mr Foster in acting as a middle man in the purchase of two flats in Bristol.
He added: "I know I am a flawed man, but I do not believe, in my heart I am a bad man".
Mr Foster did say Mrs Blair had given him "innocent" advice about the deportation case he was facing, while insisting she had not attempted to interfere in the legal processes. He said she had spoken by phone to him three times, and had corresponded with him by e-mail.
PA