Mr Cameron's brother Alexander had the case thrown out today [REX]The trial, which involves the alleged mis-selling of land to members of the public, is a so-called Very High Cost Case (VHCC).
The Government has cut fees for barristers and solicitors for such long and complex cases by 30 per cent.
In a landmark decision, Judge Anthony Leonard QC stayed the proceedings at Southwark Crown Court, adding it would be a "violation" to allow the state more time to put right its "failure to provide the necessary resources to permit a fair trial".
Labour leader Ed Miliband said the Government's changes were "impeding access to justice", while solicitors working on the case warned the cuts were "endangering" the criminal justice system.
But the MoJ accused barristers of refusing to take the case because they did not "agree with savings".
Cameron said: "We have an independent judicial system in this country" [REUTERS]And he said he had no reason to think the defendants would be able to find suitably qualified barristers to represent them if the case was adjourned given the long-running dispute over legal aid cuts.
The judge said he had concerns there was "no realistic prospect that in the future a suitable advocate will be available" to take up the case.
Earlier this week, Mr Cameron, who declined to comment as he left the courtroom, had argued the case cut to a wider problem that there was only a finite pool of Queen's counsel barristers and very high demand for their services.
Asked if he was embarrassed about the case, the Prime Minister said: "We have an independent judicial system in this country and that's an important part of having a free country.
"My brother has made arguments on behalf of his clients in court and the judge has made a decision.
"That's the process, that's the way it should be."
According to the Criminal Bar Association (CBA), each advocate who had signed a contract to undertake a VHCC case was presented by the Government with a choice either to accept a 30 per cent cut in their fees or to terminate their contract.
Since then, the CBA understands that no barrister has signed a new contract to undertake a VHCC at the reduced rates.
Ed Miliband accused the government of "impeding access to justice" [EPA]Scott Crawley, Brendan Daley, Daniel Forsyth, Dale Walker and Arron Petrou were all charged with conspiracy to defraud and sat in the public gallery to hear the ruling. Forsyth was also charged with providing false information.
Lee Adams, who represents defendant Forsyth, warned that controversial legal aid cuts were "endangering the criminal justice system".
Speaking outside court, he said: "This is an unprecedented decision, it is enormous.
"This is absolutely the right decision because it is preventing a situation where innocent men may have been convicted for lack of proper representation.
"I think justice secretary Chris Grayling needs to think about his position very carefully, otherwise he risks the effective collapse of the most serious cases."
The MoJ said the UK has one of the most expensive legal systems in the world, which even after reform will still cost around £1.5 billion a year.
An MoJ spokeswoman said: "Barristers have refused to work on this case - and a number of other Very High Cost Court Cases - because they do not agree with savings the Government is making to legal aid.
"Even after the savings, if a QC picked up a case like this one, they could expect to receive around £100,000 for working on it, with a junior barrister receiving around £60,000.
"The Government has made sure that the Public Defender Service has a number of suitably qualified advocates who could act in this case."
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