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Scott Benton faces being suspended from Parliament, after the Commons standards watchdog found he committed a "very serious breach" of lobbying rules.
The Committee on Standards recommended the MP should be suspended for 35 days.
If approved by MPs, this could lead to a by-election in his Blackpool South constituency.
Mr Benton was suspended as a Tory MP earlier this year after he was filmed offering to lobby ministers for a fake company in a newspaper sting.
In a meeting with reporters posing as gambling industry investors, he was caught offering to lobby ministers and table parliamentary questions.
The committee's report said he had given the message "he was corrupt and 'for sale'".