Aberdeen City Council recoups stolen £1m from jailed fraudster

Aberdeen City Council recoups stolen £1m from jailed fraudster

Aberdeen City Council has successfully recovered over £1 million embezzled by a former senior official, allowing more than £300,000 in council tax to be returned to residents.

Michael Paterson, a former council tax and recovery team leader, embezzled £1,087,444.47 over a 17-year period beginning in November 2006.

The 60-year-old was jailed for four years last July after admitting to the crime, which funded a lavish lifestyle of foreign holidays and fine dining. The Edinburgh High Court heard he initially began stealing to pay off £20,000 in debts. His actions were only discovered in 2023 when a colleague reported him, The Herald reports.



Mr Paterson carried out the fraud by making 622 false refunds to himself, exploiting “unrestricted and unmonitored” access to two computer systems.

An update to the council’s audit committee confirmed the full embezzled sum has now been recouped. The recovery was achieved through various means, including £104,630 from the sale of Paterson’s home and £417,523 from his pension fund. The remaining balance was covered by council insurers and funds seized under the Proceeds of Crime Act.

Chief finance officer Jonathan Belford stated that the council was the “victim of the crime,” and the successful recovery has enabled the authority to begin refunding affected residents.

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