The resignation of Lord Nazir Ahmed came just two days before a scheduled disciplinary hearing over his remarks, The Times of London reported Monday.
Ahmed has been suspended since March after the Times reported he had claimed during a television interview in Pakistan that Jews "who own newspapers and TV channels" had pressured the courts to jail him for supporting the Palestinians in Gaza.
Ahmed was sentenced to 12 weeks in prison in 2009 for his part in a fatal collision that occurred while he was texting and driving.
In the interview, he also claimed the judge who sentenced him had been appointed to the court after helping a "Jewish colleague" of former prime minister Tony Blair.
Ahmed later apologized, calling his statements "completely wrong" and "unacceptable." He asked for forgiveness from the Jewish community, saying he should have "stuck with facts rather than conspiracy theories."
In his resignation letter, however, Ahmed said his scheduled disciplinary hearing would have been unfair because it would have been based on "flawed evidence."
Ahmed said he did not remember giving the interview, adding that footage of the broadcast posted on the Times website should have undergone forensic testing.