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Going through jail, council employee who embezzled £1m to fund luxurious life-style

A council employee is going through a prolonged jail sentence for embezzling greater than £1 million to fund a luxurious life-style.

Michael Paterson exploited his place as a Council Tax and Restoration staff chief at Aberdeen Metropolis Council to pocket a complete of £1,087,444.47.

The Excessive Court docket in Edinburgh heard the 59-year-old’s prison exercise stemmed again to November 2006 and he continued scamming the native authority till September 2023.

He initially stole the money to repay money owed however then continued to take the cash for a no-expense-spared life-style spending the money on Apple items, international holidays and purchasing.

Nevertheless, he was nonetheless in debt on the time of his arrest.

Michael Paterson, 59, plead guilty to embezzling more than £1m from Aberdeen City Council over 17 years, spending the cash on electronics, holidays and eating out

Michael Paterson, 59, plead responsible to embezzling greater than £1m from Aberdeen Metropolis Council over 17 years, spending the money on electronics, holidays and consuming out

Paterson used the cash to fund extravagant holidays to areas together with Dubai, New York, Portugal, Spain, Costa Rica and Paris, the place he boasted about climbing to the highest of the Eiffel Tower.

He and his associate would typically get pleasure from two abroad holidays a yr.

His Fb feed is full of photos of him having fun with lavish meals and costly drinks at every location.

They pair are additionally photographed at dozens of luxurious lodges, eating places and sights throughout the nation over the previous decade, together with the Balmoral Lodge and Michelin-star restaurant The Kichin in Edinburgh and Harry Potter World in London.

In a single publish he writes: ‘Having meals and drinks. Shocker ehh. Delish’. In one other he states: Having a good time to this point in wonderful Ibiza. The condominium advanced is gorgeous……We’re in our aspect’.

He additionally attended numerous concert events to see stars together with Beyonce and Michael Buble in addition to a number of theatre productions in London and Edinburgh.

Prosecutor Brian Gill KC advised the court docket how Paterson had unsupervised authority to problem council tax refunds of as much as £3,000. He might additionally alter payee account particulars with out ‘authorisation or verification’ and abused the privilege.

The accused transferred unclaimed council tax overpayments right into a Nationwide checking account in his title till he was caught final September.

A colleague noticed the rip-off after noticing {that a} refund of greater than £2,000 had been made on a pc system utilizing Paterson’s username.

The court docket heard how she confronted him concerning the cost and was advised it was a mistake. However she reported her considerations to bosses who launched a probe into the staff chief’s actions.

The investigation revealed Paterson had been paying council tax cash to himself to the tune of greater than £1million.

Paterson used the money to fund extravagant holidays to locations including Dubai

Paterson used the cash to fund extravagant holidays to areas together with Dubai

Choose David Younger KC heard the council worker was sacked and police had been known as in.

Detectives ultimately arrested Paterson in November final yr.

Mr Gill advised the court docket Paterson ‘spoke freely’ throughout an interview with officers and added: ‘The accused defined the state of his monetary affairs. When he had began the embezzlement in 2006, he had been in debt to the sum of £20,000 by way of bank cards and different loans.

‘Though he had paid off his mortgage roughly 13 years beforehand he had all the time spent greater than his wage and had been in a state of perpetual money owed.

‘He had initially began the embezzlement as a result of he was frightened concerning the money owed.

‘However over time he had simply continued his overspending. He had spent the stolen cash on expertise, significantly Apple items, international holidays, consuming out roughly as soon as per week, purchasing and the upkeep of his flat.

‘He had not actually cleared his money owed and was nonetheless in important debt.

‘The accused expressed his regret saying, “I do know I’ve accomplished improper. I remorse what I’ve accomplished”.

‘He defined that he had no intention of ever repaying any of the sums that he had taken.

‘He had simply been hoping that he wouldn’t be discovered.’

The story emerged after Paterson, from Aberdeen, pleaded responsible to a cost of embezzlement earlier than Choose Younger.

He was finishing up the rip-off as the town council sought redundancies from workers members and paused housing tasks in a bid to steadiness books with cuts of tens of hundreds of thousands of kilos anticipated within the upcoming funds for the following monetary yr.

Mr Gill advised the court docket yesterday that Paterson, who joined the council in 1988 rising by way of the ranks to his final position, made £35,000 per yr from his place and has no dependents or earlier convictions.

He was in command of a staff of 12 and had ‘unrestricted and unsupervised’ entry to 2 pc methods with consumer title ‘Mike P’ stealing from his employers over a 17-year interval earlier than he was caught.

The prosecutor stated the next council probe revealed there had been 490 council tax refunds totalling greater than £700,000 to a Nationwide checking account within the ‘accused’s title’.

The native authority additionally found {that a} additional £376,042.85 had been made to a different Financial institution of Scotland account belonging to Paterson earlier than the cash was transferred to the Nationwide account.

Paterson is now going through a Proceeds of Crime Motion later this yr in a bid to get better the stolen money, the court docket heard.

Defence solicitor advocate Iain Paterson stated that since his shopper was a primary offender, he’d reserve his mitigation till a future listening to to permit for background reviews.

The 59-year-old attended various concerts to see stars including Beyonce

The 59-year-old attended numerous concert events to see stars together with Beyonce

Mr Paterson added: ‘The accused accepts imprisonment is inevitable in relation to this case and there’s no utility for bail.

‘He has attended at present anticipating to be remanded.’

Choose Younger deferred sentence on Paterson and remanded him in custody.

He added: ‘I’m going to adjourn to acquire a Legal Justice Social Work Report on you.

‘You’ll perceive that it’s a sturdy risk {that a} appreciable custodial sentence shall be imposed on you on this case.’

Following the listening to Detective Constable Tom Cameron stated: ‘Paterson portrayed himself as an trustworthy {and professional} particular person and as a substitute used his place to acquire a major amount of cash.

‘I hope this investigation highlights our dedication to completely examine all reviews of economic crime.’

Aberdeen Metropolis Council apologised to these affected and stated it will likely be in contact with anybody due council tax refunds including its monetary controls and processes have since been strengthened.

Paterson shall be sentenced on July 5, 2024 on the Excessive Court docket in Edinburgh.

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