Ms Booth set up the charity in 2013 after converting to Islam in 2010.
A Charity Commission investigation has found a series of failings, including a failure to account for “at least £92,110” of the organisation’s total expenditure.
Ms Booth, the daughter of late actor Tony Booth and half-sister of Cherie Blair, says the report is “incorrect” and that “completed accounting was provided”.
The report states that about £40,000 of charity funds had been withdrawn at cash machines and by cashing cheques, with no paperwork provided to back up its use.
Charity money had also been spent on valet parking, first-class travel and accommodation in both the UK and abroad, it said.
One expenditure listed was £1,219 to furnish an “office bedroom”, but the image provided to the commission was of a bedroom in the Hilton Hotel in Istanbul, the investigation found.
Ms Booth, 50, has been removed from her position as trustee due to “misconduct and/or mismanagement”, and banned from acting as a trustee to any other charity unless she obtains a waiver from the commission or the courts.
Chief executive Sohale Ahmed, 53 – Ms Booth’s husband – has been disqualified from his position, and will be barred from acting as a trustee of a charity or holding a senior management charity position for four-and-a-half years.
Financial records showed he had received self-authorised salary payments totalling £46,500, the report said.
Ms Booth told Sky News she resigned as a trustee from Peacetrail in 2014, after which she says she had no further involvement.
However, in its report, the commission said the charity had not accepted her resignation and she was still a trustee at the time of their investigation.
Ms Booth said this was a “technicality”.
Of course, Booth has made a career out of lying. Like remember that time she claimed Gaza was the world’s largest concentration camp – while clearly suffering from the lack of food there?
Maybe she should just blame her indiscretion on the drugs and be done with it.