Nicola Sturgeon says Michelle Thomson claims 'unacceptable if true'

Michelle Thomson said she would continue to work on behalf of her constituents, despite withdrawing from the SNP whip

The allegations against MP Michelle Thomson would represent "completely unacceptable" behaviour if they are proven to be correct, Nicola Sturgeon has told the Scottish Parliament.

Ms Thomson has been linked with property deals involving a solicitor who has since been struck off.

She denies acting unlawfully. Police are investigating the claims.

Ms Thomson was elected as the SNP MP for Edinburgh West in May. She has withdrawn herself from the party whip.

Her membership of the party was also suspended after details of the investigation emerged.

She says she had "always acted within the law" and is focusing on clearing her name in order to "return as quickly as possible to frontline politics".

But speaking at First Minister's Questions, Scottish Labour leader Kezia Dugdale said the issue was also a "moral matter" which she said had resulted in "vulnerable people being taken advantage of, as their homes are snapped up at knockdown prices".

Ms Sturgeon again insisted that she knew nothing of the allegations until they were reported by the Sunday Times.

She said: "I am in no doubt whatsoever in my mind that if the allegations - and again I stress the word allegations - are proven to be correct, they will represent behaviour that I find completely unacceptable."

The first minister said it would be "unfair and inappropriate" to judge someone who maintains their innocence while an investigation was still ongoing.

She added: "But when we have all of the facts, when the investigation is concluded, I will take whatever decisions and whatever actions I deem necessary, but those decisions will be driven by facts and not by insinuation and the attempts of opposition parties to stir up political trouble and difficulty."

Nicola Sturgeon says she only learned of the allegations when she read them in the Sunday Times

Ms Sturgeon also said it was "ridiculous" to suggest the SNP would allow a candidate to be put forward for election knowing there were "serious problems" over their integrity.

She added: "Our vetting procedures as a party are robust but we keep them under review, as I would hope every political party does.

"While we make all reasonable checks and ask all reasonable questions, by definition it is not reasonable to expect that matters of which we have no knowledge can be investigated."

But Ms Dugdale accused the SNP leader of "running away" from Ms Thomson, who was the SNP's Westminster spokeswoman for business, innovation and skills and was heavily involved with the pro-independence Business for Scotland group ahead of last year's referendum.

She also said Ms Thomson had for the past two years "been right at the heart of everything the SNP stands for".

Ms Dugdale added: "I am not asking the first minister to comment on the specifics of a live investigation because I accept that criminal matters are for the police.

"But this is also a moral matter, and I would expect her to comment on that. What we have here is vulnerable families losing out for the financial gain of others.

"Vulnerable people being taken advantage of, as their homes are snapped up at knockdown prices. Can I ask the first minister, does she agree with me that profiteering from vulnerable families is just plain wrong?"

Ms Sturgeon responded: "Kezia Dugdale, although she disagrees with me, as she is entitled to do on a whole range of issues, I hope would accept that my commitment to social justice, and helping vulnerable people, like her's, is beyond any question."

Conservative leader Ruth Davidson questioned whether it was "believable" that no one in the SNP knew about the allegations.

Ruth Davidson (left) and Kezia Dugdale both questioned the first minister about Michelle Thomson

She said: "We already know that the Crown Office and Police Scotland were asked whether they would investigate this case in July of last year.

"We know that the Law Society raised with the Crown Office in December.

"We know that journalists have been investigating it all summer and we know that the police were called in nearly three months ago.

"Yet the first minister is asking us to believe that nobody in the SNP, the party of government, from the constituency in Edinburgh West right up to the chief executive to the leader herself, knew anything about this until they read it in the paper almost two weeks ago."

Ms Thomson has been linked with property deals involving Christopher Hales, a solicitor who was struck off for professional misconduct by the Scottish Solicitors' Disciplinary Tribunal (SSDT) in May of last year in connection with 13 transactions in 2010 and 2011.

Prosecutors have instructed police to carry out an investigation into "alleged irregularities" relating to property deals in the year 2010/11 after the case was referred to the Crown Office by the Law Society of Scotland.

'Voluntarily withdrew'

The society said concerns over potential criminal matters relating to the tribunal's findings were first raised "informally" with the Crown Office in December 2014, and then "formally" in July this year.

Ms Thomson's solicitor, Aamer Anwar, said in a statement released ahead of FMQs: "Michelle Thomson maintains that she has always acted within the law.

"In the interests of her constituents and her party she thought it best if she voluntarily withdrew from the party whip.

"There was no requirement for her to do so, even though she knew it would automatically lead to her suspension from the party. She did so in order to clear her name and return as quickly as possible to frontline politics.

"To that purpose we have contacted Police Scotland at Mrs Thomson's request advising them of her wish to assist with their investigation if, or when, they wish to speak to her."