UK- Francis Maude’s links with a firm that invested millions in a hardcore porn empire will stun the Tory party as it tries to clean up its image.

The party boss is the £15,000-a-year non-executive chairman of Jubilee Investment Trust plc that bought into the sordid business of US porn star Jill Kelly.

Jill Kelly Productions Holding Inc sells hundreds of DVDs with titles such as Big Breasted Beauties and Fistful of Musketeers.

Mr Maude is a leading figure in the campaign to get more women into the Tory party, and boasted only last week: “Our party is changing. We’re more family-friendly.”

Asked if investing in filth would help him broaden the party’s appeal to women, he lamely said yesterday: “Look, it was a US company.”

Confronted by the Mirror on the opening day of his party’s conference, the 53-year-old Tory party chairman tried to claim his company’s investment was “ancient history”.

He was left speechless when we pointed out that Jubilee had actually increased its stake in the Kelly business from 5.6 per cent in 2003 to 21 per cent by last year.

Despite once owning more than 4,000 Jubilee shares and signing off its annual financial statement, Mr Maude blustered: “It’s not my company.”

Though he has declared his Jubilee interest in the Commons register of interests, his suitability to lead David Cameron’s bid to modernise the Tories is now certain to be questioned.

And party members in the father of five’s sedate constituency of Horsham, West Sussex, are likely to be horrified.

Mr Maude joined Jubilee on September 9, 2002, a month after it was founded.

Meanwhile “retired” Kelly – real name Adrianne Moore and boasting a 37D-24-36 figure – was forming a production company to make porn films after announcing her last performance.

Investors queued up to invest in her fast expanding business.

Among them was Jubilee whose 2003 accounts show it had a 5.6per cent shareholding in the business worth £2.8million.

IN Jubilee’s portfolio summary, the investment was tamely categorised as “motion pictures and services”. But its accounts state that JKPH is a “leading international provider of high quality adult entertainment”.

Former chief executive of Jill Kelly Productions Philip Starr confirmed to the Mirror that Jubilee was fully aware it was involved with a porn business.

He said: “It was fully disclosed what our business was. Jubilee was a major investor.”

Shareholders in Jubilee Investment Trust included finance firms such as Credit Suisse First Boston, Credit Lyonnais, Deutsche Bank, Bear Stearns and Alltracel Pharmaceuticals.

Mr Maude personally signed the firm’s balance sheet with Jubilee director Rufus Pearl. The MP also compiled a chairman’s report, summarising the year’s financial activity.

In Jubilee’s 2004 report, Bob Friedland, JKPH chairman and chief executive officer, talked of expanding its market.

He said: “Our deals with Erotic Media, Bizarre and Gwen Media, and our new BLU and Collateral Damage XXX lines, will expand our film library and are expected to increase our DVD and VHS sales.”

Mr Maude again signed the chairman’s statement. He had received 4,455 ordinary shares in Jubilee of 10p each in lieu of his director’s fees. Jill Kelly was then the third largest investment for Jubilee, whose assets had plunged to £16.8million from £41.4million a year earlier.

The ordinary share price had fallen from 136.2p in 2003 to 49.2p. Jubilee blamed its US investments for the decrease.

As JKPH began to struggle, Jubilee struck a deal meaning it potentially owned up to 18.2per cent of the porn firm.

This made JKPH Jubilee’s sixth largest holding in 2004.

At this time, America’s top porn producers were forced to suspend filming and brace themselves for millions in lost revenue after two performers contracted the HIV virus.

The industry was forced into a 60-day period of professional celibacy, while the 1,200 performers had medical checks.

Kelly, whose company was “condoms optional”, said: “Anyone who continues to shoot at this point is a complete idiot.

“We’re just sitting around afraid. The most important thing is safety.”

Sadly for Jubilee investors, Kelly’s empire began a downward slide as debts piled up.

In 2005, after she fell out of favour, Jubilee’s annual report revealed it owned up to 21per cent of the porn company. But the value of the investment was worth less than £100,000.

In April this year, Kelly went bankrupt and sold her expansive back catalogue to Penthouse Magazine for nearly £1million.

JKPH still features as an investment for Jubilee. But it has stopped trading.

In Jubilee’s latest half-yearly results Kelly is not mentioned.

Philip Starr was put in charge of JKP a few months before the company went bankrupt.

He said: “I believe Jubilee were introduced to JKPH by a smaller financial company.

“It was an ongoing investment so they will have lost money.

“There was no talk of terminating the relationship from us or Jubilee. They were a shareholder like everyone else.”

MR Starr claimed Jubilee never stepped in to help. He said: “When we were restructuring I drafted a letter to send to Jubilee to ask for more money to keep us afloat.

“But I don’t think the letter was ever sent, it was too late.”

Mr Starr said Jill Kelly would not have had any personal dealings with Jubilee. He said: “Jill was the lights of the company but was kept in the dark about most things.”

Described by her industry as a “porn phenomenon” Kelly, 35, was the most popular American porn actress of the 90s.

The blonde was named Female Performer of the Year in 1998 by Adult Video News.

She began developing her business interests after announcing her last performance in the 2002 porn film 100% Jill.

She said of the movie: “I wanted it to really define my sexuality since that’s what being a performer in this industry is all about.

“It’s a very sex-driven video. It’s not big on dialogue and it’s not big on plot.

“It doesn’t waste time in getting down to the heart of what I like sexually. I’m really proud of it.” She is currently divorcing her third husband, adult director Corey Jordan.

A Tory spokesman said: “Jubilee has been involved in a wide range of start-up businesses. This was only one of them.

“The board was assured that everything they did was totally within the law.”