BNP man Richard Barnbrook has been suspended as a councillor for misleading constituents over the murder figures in his borough.
He falsely claimed in a video posted on YouTube that three people were murdered in three weeks in Barking and Dagenham, and allowed the clip to remain online for four months despite being warned it was inaccurate.
Mr Barnbrook claimed he had been confused about the figures because of his dyslexia.
The standards committee at Barking and Dagenham Council has suspended Mr Barnbrook without pay for a month and told him to make an apology on the council website.
After a separate disciplinary hearing, the Greater London Authority ordered him to undergo ethics training.