Drug Dealing Gary Goldsmith An Embarrassment To British Royal Family

Kate Middleton's uncle was warned about his hedonistic lifestyle over fears he would embarrass the British royal family.

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Gary Goldsmith, who was recently captured on camera boasting about supplying illegal drugs and prostitutes, was urged to tone down his partying ways more than a year ago by security services who were concerned his behaviour could affect Kate's relationship with Britain's Prince William.

Gary - whose £5 million villa on the party island of Ibiza, Spain, was visited by Kate and William in 2006 - reportedly told pals: "They have been on to me and I've got to keep a low-profile and be a good boy. I am going to stop all the drugs and clean up my act."

William has reportedly been forced to cut ties with Gary - the brother of Kate's mother Carole - after his illicit behaviour was exposed in a British newspaper over the weekend.

Gary allegedly offered undercover reporters cocaine and £600-a-night prostitutes. The 44-year-old also made embarrassing claims about William and said the future king would soon announce his engagement to Kate.

A source revealed to Britain's Daily Mail newspaper: "Gary is said to be beside himself - practically suicidal - over the revelations but in truth he was always an accident waiting to happen."

One family member said: "Seeing him all over the newspapers has come as ahell of a shock. He is really quite a nice chap but he really has fallen by the wayside.

"He's made a lot of money in business and when you meet him you would say, 'This man's no fool' but what he has done now is a severe embarrassment to friends and family. Many of them - including Kate's parents - will be distancing themselves from him now."

Spanish police are reportedly investigating Gary's claims, but it is unlikely any action will be taken against him.