Former Dragons' Den panellist Doug Richard, 57, has denied paying a 13-year-old girl for sex

A former panellist on Dragons' Den and adviser to David Cameron has denied paying a 13-year-old girl for sex after meeting her on a 'Sugar Daddy' website.

Doug Richard, 57, is accused of spanking the girl's bottom and engaging in other sexual activity after she travelled to London to meet him.

He appeared before the Old Bailey today accused of three counts of sexual activity with a child, one of causing or inciting a child to engage in sexual activity and a charge of paying a child for sexual services.

All the charges relate to one girl who was aged 13 at the time of the alleged offences on January 2.

The US-born businessman, who is on unconditional bail, entered not guilty pleas during a short hearing before the Common Serjeant of London, Judge Richard Marks QC.

Dressed smartly in a dark suit, he spoke clearly in a thick American accent.

Richard, of Islington, north London, is due back at the same court for a five-day trial starting on January 25.

A further hearing before trial judge Mark Lucraft QC was scheduled for January 8.

In a statement released after the charges were announced, the technology entrepreneur said: 'I absolutely deny the charges against me and will contest this matter in court.'

The multi-millionaire, one of the original Dragons on the popular BBC series along with Peter Jones and Duncan Bannatyne, acted as an adviser to Prime Minister David Cameron after leaving the show in 2005.

The married father-of-three travelled with Mr Cameron on an official government trip to Africa and advised on policy.

Richard, who famously failed to invest a penny in the second series of the BBC show, received an honorary award for enterprise from the Queen at Buckingham Palace in 2006.

In 2008 he was made chairman of the Tories' Small Business Task Force and he was invited by Mr Cameron to write a report about small business in Britain when he was opposition leader.

Richard founded a business loans initiative called School For Startups, alongside the Department for Business, Innovation and Skills.

Doug Richard was an original Dragon on the BBC show - but left after two series (he is pictured top left)

Richard (second left) famously failed to invest any money in the second series of the BBC series

In 2011, Richard went on an official Government trip to Africa and worked as an adviser to George Osborne

The entrepreneur received an honorary award for enterprise from the Queen at Buckingham Palace in 2006

He went on to represent Britain on an international trade mission to Africa after the 2010 election.

In 2011 he went on an official Government trip to Africa and also worked as an adviser to Chancellor George Osborne.

Richard made his fortune in the California tech industry before relocating to Britain in 2001.