'Scandal without the sex': Top Lib Dem plays down Rennard crisis and warns party against 'washing dirty linen in public' Scottish Secretary Alistair Carmichael under fire from alleged victims He has always strenuously denied behaving inappropriately A Lib Dem cabinet minister has dismissed groping claims against Lord Rennard as a "scandal without the sex." Scottish Secretary Alistair Carmichael is also under fire after warning the party must stop "washing its dirty linen in public." One alleged victim of Lord Rennard condemned the remarks, insisting the "smears have to stop" as the crisis engulfing Nick Clegg's leadership showed no sign of abating. Lib Dem Scottish Secretary Alistair Carmichael (left) warned the party against washing its dirty linen in public and called mediation to end the legal stand-off with Lord Rennard Lord Rennard has begun legal action against the Lib Dems after his party membership was suspended because he refused to bow to Mr Clegg's call to apologise for his behaviour. An internal inquiry found that four women had made "credible" allegations against the peer, but there was a less than 50 per cent chance they would pass the burden of proof "beyond reasonable doubt." In response, the alleged victims also refused to rule out legal action against the peer, who as the party's chief executive led the Lib Dems to a string of by-election wins. To add to the Lib Dems" woes, the party last night finally suspended the membership of MP Mike Hancock, more than three years after a vulnerable constituent first complained about him. As chief executive from 2003 to 2009, Lord Rennard was one of the most powerful figures in the Liberal Democrats. In charge of almost every area of policy, he masterminded a string of by-election wins which built the number of MPs in the Commons. But after he stood down citing ill-health, rumours emerged about his behaviour towards female activists. Four women are known to have made complaints about his behaviour. Alison Smith, a former activist, said Lord Rennard allegedly sat between her and a friend at his house and then started moving his hands "down our backs and places where they had absolutely no business being." A report by Alistair Webster QC last week found that four women had made "credible" allegations against the peer, but there was a less than 50 per cent chance they would pass the burden of proof "beyond reasonable doubt." However, he recommended Lord Rennard apologise to 'distress' his behaviour caused. Lord Rennard refused, so the party suspended him while it investigates whether he has brought the party into disrepute. The peer denies any wrongdoing and is threatening to sue the Lib Dems for suspending his membership after refusing to say sorry to the women. Incredibly, Mr Clegg acted only after an independent report by a QC, who found prima facie evidence that the 67-year-old MP was guilty of "serious and unwelcome sexual behaviour," was leaked online. As the Lib Dems" reputation becomes increasingly damaged, Mr Carmichael appeared to suggest the party should deal with the Rennard scandal behind closed doors. He told reporters: "I think that it is not good for any political party to be seen to be washing its dirty linen in public. Sadly it is happening here. Asked how he would characterise the "situation," he said: "I would say scandal without the sex." Mr Carmichael, a former Lib Dem chief whip promoted to Scottish Secretary in October, called for mediation between Lord Rennard and his accusers to resolved the legal stand-off. He said: "We are in a situation where you have effectively got two camps and at a time when you are seeing the economy turning a corner, economic growth taking hold, I think there is a frustration amongst the party activists that we are not able to talk about that because we are talking so much about our own internal matters. What I am quite keen to see is that there is a some sort of mediation set up that will allow both parties to find a way through this because clearly we have got something that now needs an early resolution and the only way I see achieving that is to have some third party involvement in mediation. However Alison Smith, who has accused Lord Rennard of groping her, hit back: "The linen needs to be washed one way or another, especially when the threat to women is ongoing." She stressed that mediation is the best way forward but only if the right preconditions are in place. "The smears have to stop and mediation needs to be done by specialists in these sensitive issues," she wrote on Twitter. Miss Smith, a former activist, claims that she and a friend were once invited back to the Lord Rennard's house after dinner in central London. Lord Rennard has always denied behaving inappropriately. Mr Clegg yesterday admitted his handling of the claims against Lord Rennard last year was "not ideal" as he vowed not to back down in calling for an apology from the Lib Dem peer. Mr Clegg insisted he would not drop his demand for an apology. Alistair Carmichael was appointed Scottish Secretary to lead the charge against independence Alistair Carmichael is not a household name, but is incredibly influential in Team Clegg. When the coalition was formed in 2010 he became the party's chief whip - an enforcer ion the shadows to keep Lib Dem MPs in line when the going got tough. It is the whip's job to know the ambitions and darkest secrets and keep them out of the public eye. In October's reshuffle he was appointed Scottish Secretary, to take the fight to Alex Salmond ahead of the independence referendum. Mr Carmichael, who admits his personality can be 'volatile', is seen as a sharp, witty, blunt-speaking figure able to take on Mr Salmond. Raised in the Western Isles, he graduated from Aberdeen University with a law degree, later becoming a procurator fiscal in the north-east. He was elected MP for Orkney and Shetland in 2001. As the Lib Dem deputy leader in Scotland he accused the SNP leader of pursuing a 'nationalist witch-hunt' against anyone who opposed independence. In 2011 he struck up a friendship with Richard Hughes, drummer with piano-rock band Keane while visiting death-row inmates in America. Mr Carmichael married Kathryn in 1987 and they have two sons, Sandy and Simon.