Council worker embezzled more than £1m over 17 years

Michael Paterson was warned he faced jail

A worker has admitted embezzling more than £1m from Aberdeen City Council.

Michael Paterson, 59, exploited his position as a council tax and recovery team leader when he took the money.

The High Court in Edinburgh heard Paterson's crimes took place over 17 years between November 2006 and September 2023.

The sentencing was deferred until July.

Paterson started stealing to pay off debts but had continued to take the money, which he spent on himself, including on foreign holidays and eating out.

The court heard he was still in debt at the time of his arrest.

Prosecutor Brian Gill KC told the court that Paterson had unsupervised authority to issue council tax refunds of up to £3,000.

He could also alter payee account details without “authorisation or verification”, which he did to transfer money to himself.

Mr Gill said that Paterson had realised that he could benefit in situations where a householder had left a property and had not reclaimed for overpayment of their council tax.

The embezzlement happened at Aberdeen City Council

The scam worked until a colleague noticed that a refund of more than £2,000 had been made on a computer system using Paterson’s username.

She reported her concerns to bosses who launched a probe into Paterson’s activities.

Defence solicitor advocate Iain Paterson told the court his client was a first offender.

Judge David Young KC deferred sentence on Paterson for background reports.

He said: “You will understand that it is a strong possibility that a considerable custodial sentence will be imposed on you in this case.”

Council apology

Paterson was remanded in custody and will be sentenced on 5 July at the High Court in Edinburgh.

A spokesperson for the council said they were checking their records and would be in touch with anyone affected.

"The council apologises to any resident affected," the statement said.

"The council’s financial controls and processes – including council tax refund arrangements – have been reviewed and strengthened."

Det Con Tom Cameron of Police Scotland said: “Paterson portrayed himself as an honest and professional individual and instead used his position to obtain a significant amount of money.

“I hope this investigation highlights our commitment to fully investigate all reports of financial crime.

“Anyone who believes they’ve been a victim of a financial crime, or has information about such offences, is urged to contact Police Scotland."