A Labour councillor was yesterday found guilty of falsely accusing her political rival in an election campaign of being a paedophile and having sex with teenage boys.

Miranda Grell, 29, had been considered a rising star in Labour ranks and had been photographed with high-profile figures such as Cherie Blair, Jesse Jackson and John Reid. She beat her opponent Barry Smith to the previously safe Liberal Democrat seat in the 2006 local election. Mr Smith, 56, a prominent member of the council cabinet who has a long-term, 39-year-old Malaysian partner, lost his seat by 28 votes.

Ms Grell, a 29-year-old aide to the Deputy Mayor of London, was found guilty of two counts under the Representation of the Peoples Act 1983 of making false statements about another candidate to gain electoral advantage.

She was fined £500 for each offence and ordered to pay £3,000 towards the prosecution costs.

Ms Grell wept as the sentence was passed. The public gallery, packed with family and friends, gasped in shock.

Ms Grell had argued in court that Mr Smith encouraged Lib Dem supporters to invent the allegations because of his disappointment at losing his seat.

This version of events was rejected by District Judge John Woollard. He said: “It seems to me that in furthering what you felt was in the interests of your community you fell into error on two occasions in making statements that were untrue and damaging to a fellow candidate.

“It was a lack of maturity and experience that led you into that error.”

The court heard that while canvassing before the election on May 4 last year, Grell made a series of comments to constituents such as “Don’t vote for Barry because he is a paedophile” and “Have you heard about him sleeping with Thai boys? His boyfriend is 16, he is dirty”. Ms Grell had denied the allegations.

Earlier Gareth Branston, for the prosecution, said: “The defendant waged something of a smear campaign against her opponent Barry Smith in order to gain an advantage.

“As you can imagine these statements were false but were designed to prey on the inherent fears of paedophilia in the community.

“It was essentially a whispering campaign which Mr Smith would have found very difficult to disprove without bringing attention to his private life.”

Mr Smith, who now lives in Northern England, broke down in tears, saying that he had to flee his home after the slurs.

He said that he was spat at, verbally abused, and followed home by two men who said: “Now we now where you live, kiddie-f***er.”

Giving evidence, Mr Smith added: “I was in a state of shock. It is bad enough that homophobia was being used against me, but when I heard there was a possible suspicion of paedophilia or implied paedophilia – some things just can’t be described.

“I just wanted to get out of there.” He said that he had always tried to keep his homosexuality private, not because he was ashamed but “I don’t think it’s anyone else’s business. I want to be judged on my work and not some biological glitch”.

Mr Smith described how his constituents became aggressive towards him during canvassing in the run-up to the election. He said: “For the final couple of weeks I sensed a change of mood on the doorstep.”

He was subjected to homophobic attacks during which he was called a “f***ing paedo” and a “batty boy”.

In a statement, Waltham Forest Council said: “Her conviction means she is automatically disqualified by law from holding office as a councillor for three years. She is also under a duty to vacate her office as a councillor. This duty may be suspended for up to three months if Cllr Grell appeals against her conviction.

“In the meantime, the law requires that she is suspended from performing any functions as a councillor, with immediate effect. In accordance with its legal duties, the council is taking appropriate steps to apply this suspension.”

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