The former SAS sniper, called Soldier N, who had claimed that Princess Diana was 'assassinated' by the elite regiment, has now been accused of cheating his former wife's parents of 256,000 pounds.
His former in-laws made the claim in an eight-page letter that they sent to Soldier N's commanding officer and to Dyfed Powys Police, the Daily Star reported.
In the letter, the couple, who are in their 70s, alleged that Soldier N had convinced them to remortgage their Wales property in 2009 and then give him the cash so he could eventually buy it in due course, but he failed to do so.
They claimed that Soldier N had instead used the money to pay off his debts.
The old couple had to move to a rented accommodation after their small holding was repossessed by the bank.