Former Council Employee Sentenced for £900k Fraud Against Vulnerable Claimants
A former council worker who embezzled nearly £900,000 from the accounts of vulnerable benefit claimants to support an extravagant lifestyle has been handed a prison sentence. Richard Shaw, aged 46, was employed by Bolton Council's financial protection team, where he managed state benefits for individuals unable to handle their own finances.
Details of the Fraudulent Activities
Between 2015 and 2023, Shaw systematically transferred funds totalling £893,296 to nine personal bank accounts under his control. The stolen money was used to acquire high-value assets, including two BMW cars with a combined worth of nearly £120,000. Additionally, he purchased a holiday lodge in Ribble Valley, Lancashire, for £100,000 and spent almost £18,000 on garden improvements.
During a warrant executed at his residence in Harrier Close, Bolton, authorities seized various items such as computers and bicycles. The investigation also uncovered payments exceeding £53,000 made to multiple women, with transaction references like "treat," "allowance," "nice," and "ass," indicating regular weekly disbursements.
Legal Proceedings and Council Response
Shaw was dismissed for gross misconduct in March 2023 after Bolton Council identified and reported the potential fraud to Greater Manchester Police. He subsequently pleaded guilty to one count of fraud by abuse of position at an earlier hearing. A spokesperson for Greater Manchester Police confirmed that a proceeds of crime hearing will be conducted to recover the remaining funds and reimburse the council.
Bolton Council emphasized its robust internal safeguards, which initially detected the crime. The council stated that all identified financial losses to individuals have been refunded, and any benefit discrepancies have been rectified. They noted that such incidents are exceptionally rare and do not reflect the dedication of the broader workforce.
This case highlights the severe consequences of financial misconduct within public service roles, underscoring the importance of stringent oversight and accountability measures to protect vulnerable populations.
