Michael Paterson Jailed for Embezzling £1M from Council

Ken Banks
BBC Scotland, North East reporter

A former council worker has been sentenced to four years in prison for embezzling over £1 million from Aberdeen City Council over a span of 17 years. Michael Paterson, 59, abused his role as a council tax and recovery team leader to siphon funds, starting in 2006 until last year.

Initially motivated by debt, Paterson’s illicit gains were spent on foreign holidays, dining out, and high-end technology, including Apple products. His fraudulent activities came to light when a colleague grew suspicious of a £2,000 refund processed under his username.

After confronting Paterson, she reported her concerns to management, leading to an investigation that uncovered the full extent of his crimes. With unsupervised access to issue council tax refunds up to £3,000 and alter payee account details, Paterson exploited these privileges to divert funds to himself.

The prosecutor, Brian Gill KC, stated, “He had just been hoping that he would not be found out.” Paterson expressed remorse, admitting, “I know I’ve done wrong. I regret what I’ve done,” when confronted by police.

Despite earning a salary of £35,000 a year, Paterson was still in debt at the time of his arrest. A Proceeds of Crime action is set to recover the stolen funds later this year. Defense solicitor advocate Iain Paterson noted that his client accepted imprisonment was unavoidable, expressing deep shame over his actions.

Judge David Young KC highlighted the seriousness of the case, stating, “This is unquestionably a serious matter and it must therefore bring serious consequences for you.” The judge also noted that Paterson’s early guilty plea led to a reduced sentence; otherwise, he could have faced six years behind bars.

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