Michael Paterson: Aberdeen City Council worker who embezzled funds of more than £1mil in 17 years convicted

A worker has been convicted of embezzling funds of more than £1 million from Aberdeen City Council. Michael Paterson, 59, pleaded guilty at the High Court in Edinburgh of embezzling funds of £1,087,444.47 from the council between 2006 and 2023.

An investigation was launched in 2023 when officers were made aware and he was arrested on December 21, 2023. He was remanded in custody and is due to be sentenced on July 5.

According to reports, Paterson began stealing to settle his debts but continued misappropriating funds for personal use, including foreign holidays and dining out. The court also heard that at the time of his arrest, he was still in debt.

Prosecutor Brian Gill KC revealed that Paterson had unsupervised control to issue council tax refunds up to £3,000 and could alter payee account details without authorisation or verification, which he exploited to funnel money to himself.

Mr Gill explained that Paterson realised he could profit when a householder vacated a property without reclaiming their council tax overpayment. The scheme unraveled when a colleague noticed a refund exceeding £2,000 processed under Paterson’s username and reported it, prompting an investigation.

Defense solicitor advocate Iain Paterson noted that his client was a first-time offender. Judge David Young KC deferred sentencing for background reports, saying: “You will understand that it is a strong possibility that a considerable custodial sentence will be imposed on you in this case.”

A council spokesperson apologised to affected residents and confirmed that financial controls, including council tax refund processes, have been reviewed and strengthened.

Detective Constable Tom Cameron 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.