David Abrahams is the son of the ex-lord mayor of Newcastle who is a well-known person in the Labour Party. His mother too has been a Labour councilor in the 1970's. Now David Abrahams is a well known and rich property developer in the north-east. He makes his money by making and selling flats.

David Abrahams has been making donations by proxy of more than £600,000 to the Labour Party. This has created so much controversy that it has led to the resignation of the Secretary General Peter Watt as he was aware of the arrangements being used. According to Mr. Abrahams he had gifted the money to his friends and colleagues so that they can donate for him. He had even donated money anonymously for the electoral campaign of Harriet Harman's to become Deputy Leader of the Labour party. She actually won the Labour deputy leadership and was made the "Secretary for Equality" along with the chair of the Labour party and Leader of the House of Commons.

David Abrahams told "The Jewish Chronicle" that if the Government starts hammering him than it might take one or two dirty turns there as well. However David Abrahams has denied giving an interview to The Jewish Chronicle.

It has also come to light that the Labour party had also accepted a hefty donation of £830,000 from Mahmoud Khayami, a 77-year-old Iranian-born businessman. Donations are supposed to be clear and proxy or unofficial arrangements are not allowed.

Having being caught and the concept that no one gives anyone anything without something in return, the Labour Party is now trying to smear David Abrahams by claiming that he actually wanted a seat in the House of Lords (a peerage).