Jailed peer Jeffrey Archer has been cleared of misappropriating millions of pounds of charity funds.
An investigation by auditor KPMG into the Simple Truth Appeal found no evidence of misappropriation. The audit was carried out for the British Red Cross.
Lady Archer said she and her family are delighted but not surprised.
The investigation began in July this year when Liberal Democrat Baroness Nicholson wrote to the Commissioner of the Metropolitan Police.
She asked for an investigation into Archer's involvement in the Simple Truth Appeal, which raised money for Kurdish refugees in 1991.
The allegations centred around claims that millions of pounds went missing from the fund, which was spearheaded by Archer and was said to have raised up to £57 million worldwide.
Lady Archer said: "Baroness Nicholson, whose allegations have wasted much time and caused much unjustified distress should surely now accept KPMG's findings".