MP Aidan Burley was sacked as parliamentary private secretary to Britain's transport minister after newspapers published pictures of the boozy bash at a posh French ski resort.
The Conservative Party disciplinary investigation concluded two years ago but the verdict was only released after legal proceedings in France concluded Tuesday.
The groom, Mark Fournier, was prosecuted for wearing a Nazi uniform and insignia, which is outlawed in France.
A police tribunal in the French Alps town of Albertville upheld the prosecutor's demand for a maximum fine of 1,500 euros (USD 2,065).
The report by Prime Minister David Cameron's Conservative party confirmed that "as best man, Mr Burley purchased the costume alongside the flights and other costs associated with the trip.
"Mr Burley argued strongly that the choice of costume was inspired by the British comic association with aspects of the war," it said.
British stag parties, held before a man gets married, are typically jovial, alcohol-soaked nights out, often with the groom-to-be in embarrassing fancy dress.
The controversial party took place on December 3, 2011, in a restaurant in upmarket Val Thorens.
The disciplinary investigation by Conservative peer Lord David Gold found there was "no political motivation whatsoever", but said Burley's "unacceptable and offensive actions" threw his judgement into question and he was right to lose his post.
"Mr Burley is not a bad man, still less a racist or anti-Semite," the report found.
"However, his actions were stupid and offensive."
Burley, who has visited Auschwitz on Gold's recommendation, will face no further disciplinary action.
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