An Aberdeen council worker is facing the possibility of a lengthy prison sentence after admitting to embezzling more than £1 million in order to support a lavish lifestyle. Michael Paterson, 59, abused his position as the leader of the Council Tax and Recovery team at Aberdeen City Council, enabling him to divert substantial funds into his personal account over a period of 17 years, largely avoiding detection by local authorities.
According to court proceedings in Edinburgh, Paterson’s criminal activities began in November 2006 and continued until September 2023, initially to pay off debts. However, he continued to siphon money from the council to support a lifestyle characterized by luxury items, overseas holidays, and frequent dining at upscale restaurants. Ironically, at the time of his arrest, Paterson was still significantly in debt.
The embezzled funds financed extravagant trips to destinations such as Dubai, New York, Portugal, Spain, Costa Rica, and Paris, as well as frequent dining at high-end restaurants. With Paterson and his partner enjoying two overseas holidays per year, he frequently showcased their opulent experiences on social media platforms, including images of lavish meals, pricey drinks, luxury hotels, and various tourist attractions.
The court discovered that Paterson had unsupervised authority to issue council tax refunds of up to £3,000, allowing him to alter payee account details without proper authorization, thereby transferring unclaimed council tax overpayments into his personal Nationwide bank account.
Following an investigation prompted by a colleague’s discovery of a suspicious refund, it was revealed that Paterson had siphoned over £1 million from the council. He was subsequently dismissed from his position and arrested by the police in November.
During his police interview, Paterson confessed to his actions and expressed remorse, stating that his initial motivation was to clear his debts. Despite using the embezzled money for an extravagant lifestyle, he remained in significant debt and stated that he had no intention of repaying the stolen sums.
Paterson’s sentencing has been deferred until July 5, 2024, with the judge indicating the likelihood of a considerable custodial sentence. The case has highlighted the need for stronger financial controls and processes within the council. Aberdeen City Council has assured that it will enhance its financial controls moving forward and will be in touch with those affected by the embezzlement.
As investigations continue, Paterson is facing a Proceeds of Crime Action later this year to recover the stolen cash. Detective Constable Tom Cameron emphasized the commitment of law enforcement to thoroughly investigate financial crimes, highlighting the severity of Paterson’s breach of trust and misuse of authority.
The misuse of his position by the council worker serves as a stark reminder of the importance of maintaining transparency, accountability, and ethical conduct in all professional roles. Paterson’s case underscores the critical need for strict financial oversight and robust internal controls to prevent and swiftly detect similar breaches of trust. The consequences of Paterson’s actions have not only affected the council he exploited but also serve as a cautionary tale for individuals in positions of authority. Such instances of abuse of power perpetuate systemic vulnerabilities and erode public trust, necessitating increased vigilance and stringent oversight in the management of public funds.