Lord Ahmed is said to have been caught on camera blaming his prison sentence – for sending text messages shortly before his car was involved in a fatal crash – on pressure placed on the courts by Jews “who own newspapers and TV channels”.
In an interview he rowed back from the comments, describing them as “completely wrong” and “unacceptable”.
The peer said he could not believe the video when he saw it and said the statement was the product of a “twisted mind”, according to the website.
Lord Ahmed added that he did not “really have any explanation or excuse” for why he made the comments and said he was “embarrassed”.
He also apologised for embarrassing Labour leader Ed Miliband. “He’s of the Jewish faith and I’m sorry that I embarrassed him – or anybody else in the Labour Party.
“I’m particularly sorry to all my colleagues in the House of Lords and in the House of Commons because one thing many of them know is that I’m not anti-Semitic or a conspiracy theorist.”
Lord Ahmed was suspended from the Labour Party for three months last year over reports that he offered a $1m “bounty” for the capture of US President Barack Obama and his White House predecessor, George Bush. He denied having made the comments.