Former Rollers manager Paton cleared of rape claim
Following a lengthy investigation, police said there is "insufficient evidence" to substantiate the claim against the 69-year-old.
Former guitarist Pat McGlynn and singer Les McKeown made the complaint in 2003. They claimed the alleged attack took place in a hotel room while the band was on tour in 1977.
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Hide AdMr Paton said that he had been interviewed under caution, fingerprinted and DNA-tested during the investigation.
He described the lengthy investigation as "a nightmare" and claimed he was being victimised because he was gay.
Mr Paton, who lives in a mansion in Gogar, on the outskirts of the city, said: "It has been decided I have no case to answer. I am relieved, but I knew I had done nothing wrong. There is no way I tried to rape him. I was always confident it would go away.
"I am gay, and if you are gay in this country you are considered to be a pervert," he claimed.
"I've had to put up with this sort of thing for years. Scotland is a very jealous country and I'm someone who has done well. I'm looking to move to Portugal."
A Lothian and Borders Police spokesman said: "Allegations of a historical sexual nature were made to Lothian and Borders Police in 2003.
"We investigated them and consulted with the procurator-fiscal and concluded there was insufficient evidence."