He was living in a fantastical world of his own James Comyn, Milench's lawyer

Milhench's lawyer, James Comyn QC, told the court his client's motive for the forgery had been "bizarre".

He said Milhench had decided to deal a "body blow" to the Labour government's election chances in the approaching February election.

"He was living in a fantastical world of his own," Mr Comyn said.

The three-year sentence is the culmination of a disastrous year for Ronald Milhench.

In February his wife, Kathleen, drowned after a car he was driving crashed into Chasewater Lake in Staffordshire.

Milhench managed to swim to shore but police divers later found his wife's body near the submerged vehicle.

An inquest jury later returned a majority verdict of accidental death in spite of Milhench's admission he had recently doubled the insurance on Kathleen's life to �40,000.

In the early 1970s Ronald Milhench sold his insurance broking firm for a substantial profit.

But failed property ventures and a flamboyant lifestyle later led Milhench to run up debts of more than �500,000.

He is expected to appear again in court early next year to face a bankruptcy hearing.

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