The Duke of York was facing a civil court case in New York amid claims that he sexually assaulted a woman when she was just 17 – which he strenuously denies.
It had been claimed that Andrew and his accuser Virginia Giuffre were introduced by millionaire paedophile Jeffery Epstein and his now jailed ex, Ghislaine Maxwell.
But the case failed to materialise after Prince Andrew’s legal team reached an out of court settlement with Ms Giuffre, which is believed to be as high at £12m.
A source who served with Andrew in the Falklands War has suggested that the Royal Family member is in low spirits following the episode.
The Mirror reports that he has been allowed to keep the title of Vice Admiral – which is the only armed forces honorary title he still holds – to allegedly keep him happy.
The 62-year-old was in the Navy for 22 years and saw active service in the Falklands War as a helicopter pilot.
It has been claimed that the Queen allowed him to remain Vice Admiral.
“He is down, he is broken. If he wants to to dress up once in a while in a naval uniform then let him”, the source said.
They added: “He was actually not a bad person when I knew him. He had a few entitlement issues but that is to be expected.
“His reputation is in tatters, his public life is over. He is a walking embarrassment.
“Frankly, my view is let him keep the rank of Vice Admiral. He served in the Royal Navy in the Falklands War and this was bestowed upon him by the Queen. It’s effectively the same as an honorary degree.
“he hasn’t been convicted of anything. I have no idea whether he is guilty or innocent, so I think he has paid quite a heavy price.”
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