The Electoral Commission has decided Wendy Alexander will not face charges over an illegal donation to her Scottish Labour party leadership campaign.
The commission decided it was "not in the public interest" to pursue the matter by referring it to the Crown Office and Procurator Fiscal Service - despite the acknowledgements she had acted improperly.
Ms Alexander was accused of receiving an illegal donation of some £950 from Jersey-based developer Paul Green. Mr Green was not a registered voted, and thus ineligible to offer campaign funds to any candidate.
It was alleged Ms Alexander, the leader of the Scottish Labour Party, had recorded the donation as having been received from a UK registered company.
And, while finding Ms Alexander had taken "significant" steps to ensure her campaign was in accordance with regulations, these steps had not gone far enough.
Yet, after interviews with Ms Alexander and her campaign team the Electoral Commission decided there was insufficient evidence to bring a prosecution over the matter.
"The commission has concluded that there is not sufficient evidence to establish that an offence has been committed. The commission has therefore decided that it is not appropriate to report this matter to the Procurator Fiscal," said the statement.
The commission also moved to defend its impartiality following intense media interest in the case.
"The conclusions reached by the commission are the result of its independent judgment, following a thorough investigation," continued the Electoral Commission statement.
"Extraneous considerations such as political or public opinion have played no part in this process, nor have they played any part in the Commission's decision making."