The Australian Federal Police revealed this afternoon that the email that sparked the so-called Utegate controversy was faked.

The email was alleged to have been sent from prime ministerial adviser Andrew Charlton to Treasury official Godwin Grech, raising the plight of Queensland car dealer John Grant and his possible access to the taxpayer-funded OzCar scheme.

Search over ... Australian Federal Police leave Godwin Grech's home in Canberra. Credit:Glen McCurtayne

Mr Grant gave Prime Minister Kevin Rudd a free ute.

The AFP statement came following a raid this morning on the home of Mr Grech and Treasury offices.