He stood for Parliament in the 2004 federal election, narrowly losing to John Reynolds by 1687 votes in what has long been considered one of the more right-leaning seats in the Vancouver area.

On October 28, 2007, The Province newspaper alleged that Wilson's victory was aided by unlawful, off-the-books cash spending.

In December 2007, the Liberal Party announced that Wilson would not be permitted to run under the Liberal Party banner following an investigation (unrelated to the investigation being conducted by Elections Canada) into Wilson's omissions of a number of legal and financial troubles during three nomination vetting processes.

The Province's article alleged that Wilson and his wife were subject to Social Services Tax Act liens on three properties[7] and owe $2.1 million in bank mortgages,[7] that Wilson misled the media about the true extent of his business success,[7] exaggerating the number of restaurants he founded[7] and claiming to have sold an accountancy business his in-laws claim closed,[7] among other discrepancies, and that when Wilson's two restaurants, Mahoneys and Wilson's Steakhouse, closed, he was taken twice to the BC Employment Standards Tribunal for refusing to pay employees,[7] was sued twice for failing to pay contractors,[7] and was twice compelled by the courts to pay GST owing.

[7] On October 28, 2007, Wilson resigned from the Liberal Party caucus amid these allegations but retained his seat in the House of Commons as an independent.