Reform UK backer Charlie Mullins narrowly avoided being stripped of his OBE after making controversial social media comments about London Mayor Sadiq Khan.
The Honours Forfeiture Committee threatened to revoke the honour in September over remarks dating back to 2022.
The committee told Mullins they were "minded to recommend to His Majesty that your OBE be revoked" after accusing him of "bringing the honours system into disrepute".
The multimillionaire founder of Pimlico Plumbers was investigated over a post where he suggested "someone should kill" Khan during a discussion about London's Ulez scheme.
Charlie Mullins narrowly avoided being stripped of his OBE after making controversial social media comments about London Mayor Sadiq Khan
PA
The case has drawn comparisons to the debanking scandal involving Nigel Farage.
The committee also cited what they called a "misogynistic" comment about media personality Carol Voderman having her "t**s hanging out" during an appearance on GB News.
Officials referenced a racist joke allegedly made at the British Curry Awards.
Comments about transgender people in the workplace were also mentioned in the committee's letter.
"While you apologised for your remarks in each case, the committee feels that this is a troubling pattern of behaviour," the officials wrote.
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The controversial Ulez expansion took place in August 2023PA"This behaviour is not of the standard expected of an honours recipient," they added.
The Forfeiture Committee is chaired by Cabinet Secretary Sir Chris Wormald and convened on an ad-hoc basis by the Prime Minister.
Mullins has accused Sir Keir Starmer's government of pursuing political revenge against him.
"It's definitely politically motivated. I'm being victimised because I left the UK and said I'm not playing the game with them any more," he told The Telegraph.
The 72-year-old, who now lives primarily in Marbella, Spain, has donated tens of thousands of pounds to Reform UK.
"Anybody that speaks up against them they want to destroy, and that's what they're doing here with me," Mullins said.
"They think that because I've opened my mouth and spoke the truth, they think they're going to shut me up. Well they ain't."
Reform UK leader Nigel Farage defended Mullins, saying: "Labour needs to leave Charlie alone and focus on sorting out the economic mess they've created."
The 72-year-old, who now lives primarily in Marbella, Spain, has donated tens of thousands of pounds to Reform UK
PAFollowing extensive submissions by Mullins' legal team, the committee ultimately decided not to revoke his OBE.
His lawyers argued that the grounds for forfeiture had not been met and that his comments were protected under freedom of expression.
They also noted that Mullins was struggling with mental health issues when he made the remarks.
As part of his defence, Mullins pledged to undertake "gender sensitivity and diversity training" to prevent similar incidents.
The committee warned him last week that he could face further investigation "should any future behaviour make that necessary".
The Forfeiture Committee typically acts when an honour holder has received a prison sentence, been struck off by a regulatory body, or been found guilty of a sexual offence.
A Government spokesperson said: "Claims that the Forfeiture Committee is politically motivated are completely unfounded and inaccurate.
"The Forfeiture Committee is entirely apolitical and no ministers or political appointees are involved in any of its decision making."
