John Henry Sayers was smeared with false rape allegations to blacken his name and take him off the streets, a court heard.
John Henry Sayers' barrister Andrew Rutter said the 50-year-old had suffered the indignity of being accused of rape in order to have him locked up on remand as a category A prisoner for as long as possible.
Mr Rutter said the conduct of the prosecution had been "dismaying and lamentable" and that there had never been a chance of conviction.
Sayers was granted bail earlier this month after weeks remanded in high security prisons, including Frankland and Wakefield.
The case against John Henry Sayers and two women was discontinued during a hearing at Newcastle Crown Court on October 18.
Prosecutors said the complainant had been re-interviewed and after reviewing the evidence, a decision was taken to discontinue the case against Sayers, Sharon Loftus and Ann-Marie Taylor.
Sayers has described the allegations as a “character assassination” by police.
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