Former X-Factor judge Tulisa punches the air as she walks free from court after her trial for supplying cocaine collapses when evidence emerges that Sun's 'fake sheikh' reporter LIED

• Singer cleared of organising £820 drug deal between friend and reporter
• She believed Mazher Mahmood was a powerful Hollywood film producer
• Judge Alistair McCreath told the jury that the case 'cannot go any further' 
• Judge said there were 'strong grounds to believe' that Mr Mahmood 'lied'
• Mahmood's driver Alan Smith was central to the collapse of today's case
• He picked Tulisa up from a hotel where she spoke out against taking drugs 
• However after talking to Mahmood, Smith changed his crucial evidence 
• Her friend Mike GLC was also cleared despite pleading guilty before the trial 
• Tulisa said 'we have now succeeded in exposing the real culprit and liar'
• Sun confirm Mahmood 'suspended pending immediate internal investigation' 

By Darren Boyle

Former X-Factor judge Tulisa Contostavlos has today been cleared of supplying cocaine after a judge threw out the case against her at Southwark Crown Court. 

She had been accused of brokering a deal to supply £820 of the drug to an undercover reporter. 

The judge today ruled that Sun undercover reporter Mazher Mahmood gave 'entirely inconsistent evidence'. 

The collapse of today's trial is the latest scandal to hit News UK, who under the company's previous guise, News International, was forced to shut the News of the World following revelations of phone hacking. 

Walking: Pop star Miss Contostavlos looked happy as she left Southwark Crown Court in central London today

Statement: Contostavlos said her life had been put on hold for the past year while she dealt with the allegations

Following the dramatic development News UK has confirmed that Mr Mahmood has been 'suspended pending an immediate internal investigation'.

The court heard the collapse of the case hinged on evidence given by Mr Mahmood about a statement given to police by a driver called Alan Smith who picked up Miss Contostavlos from a hotel in London in May last year.

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Mr Smith originally suggested he had heard the star talking disapprovingly about drugs but 'changed his mind' after a conversation with the undercover reporter, the court was told.

During a pre-trial hearing Mr Mahmood was asked: 'Did you subsequently ask or find out, discuss with Mr Smith anything that was said in the car?' 

Rapper Michael Coombs, known as Mike GLC also had charges against him thrown out at Southwark Crown Court despite pleading guilty at the beginning of the trial after the judge ruled the evidence had been tainted

Probe: The Sun defended the original investigation but said Mr Mahmood (believed to be shown in this image) had been suspended pending an internal inquiry

He replied: 'No.'

TALES OF THE 'FAKE SHEIKH'

Dubbed the ‘Fake Sheikh’, Mazher Mahmood has spent 25 years as an undercover reporter with everyone from celebrities to royals caught up in his famous exposes.

But his credibility was placed in doubt after the judge in the trial of Miss Contostavlos accused him of telling ‘a knowing lie’ in a pre-trial legal hearing.

Known to his colleagues simply as Maz, he claims to have helped put more than 100 criminals behind bars and risked his life on a daily basis to lift the lid on the murky world of crime.

Paedophiles, arms dealers and drug dealers have all found themselves at the centre of Mr Mahmood's stories.

So too have celebrities and public figures, including the Countess of Wessex who was taped calling the Queen ‘the old dear’, and Sven-Goran Eriksson who revealed his plans to quit as England manager.

However, Respect MP George Galloway claimed in 2006 to have blown the cover of Mr Mahmood after publishing his photograph online.

The politician decided to expose Mr Mahmood after the journalist's covert attempt to trick him into ‘discreditable conduct’ during a dinner at the Dorchester Hotel.

A front-page News of the World story in 2002 saw Mr Mahmood claim to have exposed a plot to kidnap former Spice Girl Victoria Beckham and hold her ransom for £5million.

Five men were arrested but later cleared when the prosecution case collapsed after it was revealed the source for the story had been paid £10,000 for the story despite having criminal convictions to his name, and was therefore deemed an unreliable witness.

Asked if at any stage he discussed Miss Contostavlos saying she 'disapproved' of drugs, he also said no.

But the judge said he gave answer which were 'entirely inconsistent' when he gave evidence about the same topic at the trial last week. 

Outside the court, Miss Contostavlos said her life had been put on hold for the past year while she dealt with the allegations.

She said: 'As my lawyer said at the outset, we have now succeeded in exposing the real culprits and most importantly, the real liar. 

‘As someone who has had my life ruined for the past year, I strongly  believe that this type of entrapment should not happen to anyone.

'I urge both the police and News UK to investigate Mazher Mahmood and his team and to put an end to his deceit in pursuit of sensational stories for commercial gain.'

She said: 'I have never been involved in either taking or dealing cocaine. This whole case was a horrific and disgusting entrapment by Mazher Mahmood and the Sun on Sunday newspaper.'

'Mahmood has now been exposed by my lawyers as lying to the judge and jury. These lies were told to stop crucial evidence going before the jury. This evidence showed that I told Mahmood's long-standing driver that I disapproved of drugs - which is the truth.' 

'It is clear that the driver was pressurised to change statement to strengthen Mahmood's evidence and to do damage to mine.'

She called on News UK and the Metropolitan Police to investigate Mr Mahmood. She said the Sun on Sunday reporter had tricked her by making her think she was auditioning for a major movie role. 

Explaining his decision to halt the case to the jury, the judge said: 'Occasionally - very rarely - circumstances may arise in which a court has to say that whatever apparent merits a prosecution may have, the court cannot allow the prosecution case to be taken forward to trial.'

He said the situation arose from a 'fundamental principle' that the court 'cannot allow itself to be party to improper conduct'.

Tulisa thanks her fans and lawyers following trial collapse

Tulisa Contostavlos called on the Metropolitan Police to investigate Mazher Mahmood after being cleared of arranging a drug deal. She said he had been 'exposed lying to the judge and the jury' 

The judge went on: 'Where there has been some aspect of the investigation or prosecution of a crime which is tainted in some way by serious misconduct to the point that the integrity of the court would be compromised by allowing the trial to go ahead, in that sense the court would be seen to be sanctioning or colluding in that sort of behaviour, then the court has no alternative but to say, "this case must go no further".'

It can now be reported that before the trial began, defence counsel argued that the case should be 'stayed' - meaning thrown out - but their application was turned down.

But giving his ruling today, the judge said 'matters have moved on since then'.

Dismissing the case, Judge Alistair McCreath claimed there is a 'fundamental principle'  that if the investigation of a crime is tainted by serious misconduct  'the court would be compromised by allowing the trial to go ahead'

The Sun defended the original investigation but said Mr Mahmood had been suspended pending an internal inquiry.

A spokesman said: 'We are very disappointed with this outcome, but do believe the original investigation was conducted within the bounds of the law and the industry's code. This was demonstrated by the CPS (Crown Prosecution Service) decision to prosecute.

'The Sun, of course, takes the judge's remarks very seriously. Mr Mahmood has been suspended pending an immediate internal investigation.'  

Arriving in court this morning one of Tulisa's heels got caught in a drain and had to be retrieved 

Tulisa, pictured second right, heard today that the case against her 'cannot go any further' 

The singer was accused of boasting that she could 'sort out' cocaine for a journalist and put him in touch with her rapper friend Mike GLC, who supplied the Class A drug.

Undercover reporter Mr Mahmood, dubbed the 'Fake Sheikh', posed as a wealthy film producer called Samir Khan when he met the former X Factor judge at a string of luxury hotels and restaurants, jurors at London's Southwark Crown Court heard.

Contostavlos vehemently denied brokering the deal, which was exposed in the Sun on Sunday newspaper last June.

Today judge Alistair McCreath told the jury that the case 'cannot go any further' because there were 'strong grounds to believe' that Mr Mahmood had 'lied' at a hearing before the trial started.

The 26-year-old star smiled broadly in the dock as the jury was formally discharged from trying the case.

Tulisa, pictured arriving at court today, smiled broadly in the dock as the charges against her were dismissed

Miss Contostavlos appeared ecstatic, punching the air as she left the dock before crying as she hugged supporters including her PA, Gareth Varey, shortly after the case against her was thrown out.

Mike GLC - whose real name is Michael Coombs - pleaded guilty before the start of the trial to supplying half an ounce (13.9g) of cocaine but he also walked free after judge said the case cannot proceed against him.

The 36-year-old also wept as he hugged defence barrister Jeremy Dein QC. 

 The topsy-turvy world of Tulisa from the 'ghetto' 

Tulisa Contostavlos was still a teenager when she first found fame.

She teamed up with her cousin Dappy and their friend Fazer in N-Dubz, a reference to north London where they grew up, while they were still at school.

The first of more than 10 top 40 hits came in 2007 and by 2010 she had moved into television and was presenting a documentary about young people caring for parents with mental health problems which drew on her own experiences growing up with her mother.

Tulisa, centre, found fame with her band N-Dubz, she founded with her cousin Dino 'Dappy' Contostavlos, left, and Richard 'Fazer' Rawson, right, who had their first hit in 2007 before moving on into television presenting

She also featured in the Channel 4 fly-on-the-wall show Being ... N-Dubz, which followed the group over two series, but she really hit the big time in 2011 when she joined the judging panel on Simon Cowell's show The X Factor.

She described it as her 'dream job' and stormed to success at the first attempt, helping pull in some of its highest ever viewing figures and steering her girl group Little Mix to victory.

The singer stayed on for another series but the high-profile show put her own private life under the spotlight and revelation after revelation ended up on the front pages.

Along the way, Tulisa spoke candidly about her troubled childhood which included a suicide attempt and self-harm and confessed to feeling out of place on the show, saying: 'I'll think, "I don't belong here."

'I get those moments now and again. Although I can be very feisty, that's a defence mechanism for me. I'm defensive because too many years of my life I was treated like s***.'

There was also controversy when spin-off show The Xtra Factor was rapped by TV watchdog Ofcom for promoting her perfume.

In 2012, she signed a publishing deal for two novels and an autobiography which detailed for the first time how she was drugged and sexually abused when she was 16 and also revealed her involvement in a girl gang.

Later that year, she said she was 'devastated' after a video of her sharing an 'intimate moment' with an ex-boyfriend was circulated on the internet.

The singer told fans she had been 'deeply betrayed' and took legal action which ended months later with her at London's High Court accepting "sincere apologies" from ex-boyfriend Justin Edwards.

She told reporters the rapper had 'messed with the wrong woman' and that she was a 'stronger, wiser young woman who has taken this experience and learnt from it'.

Her love life - including a relationship with footballer Danny Simpson - kept her on the front pages as her career started to flag with lacklustre sales for her debut solo album, which one critic described as having 'a pound-shop Rihanna sound'.

Worse was to follow last year when she was axed from The X Factor, telling fans on Twitter 'it's time to do something different'.

A month later she was accused of boasting that she could 'sort out' cocaine for an undercover journalist. She vehemently denied brokering the deal and punched the air when the trial collapsed today, declaring outside court: 'This whole case was an horrific and disgusting entrapment.' 

'I HAVE NEVER DEALT DRUGS': TULISA CONTOSTAVLOS'S STATEMENT

'We have now succeeded in exposing the real culprits'

'Let me be perfectly clear. I have never dealt drugs and never been involved in taking or dealing cocaine.

'This whole case was a horrific and disgusting entrapment by Mazher Mahmood and the Sun on Sunday newspaper.

'Mahmood has now been exposed by my lawyers openly lying to the judge and jury. These lies were told to stop crucial evidence going before the jury. This evidence shows that I told Mahmood's long-standing driver that I disapproved of drugs, which is the truth.

'It is clear that the driver was pressured to change his statement to strengthen Mahmood's evidence and to damage mine.

'Thankfully the lies have been uncovered and justice has been done.

'This case only happened because Mahmood and his team tricked me into believing I was auditioning for a major movie role.

'They targeted me at a time when things were going badly for me and they had no mercy.

'Mahmood got me and my team completely intoxicated and persuaded me to act the part of a bad, rough, ghetto girl.

'They recorded this and produced this as evidence when I thought it was an audition. It was a terrible thing to do.

'As my lawyer said at the outset, we have now succeeded in exposing the real culprits and, most importantly, the real liar.

'As someone who has had my life ruined for the last year I strongly believe that this type of entrapment should not be allowed to happen to anyone.

'I urge both the police and News UK to investigate Mazher Mahmood and his team and to put an end to his deceit in pursuit of sensational stories for commercial gain.

'I have not been able to work for a year, and I am now looking forward to resuming my career.

'I will use these experiences to make me stronger. I would like to thank all the people who have supported me through this terrible ordeal, including my fans and, of course, my legal team.'