Council worker stole £900,000 from vulnerable benefit claimants to fund luxury lifestyle

Richard Shaw transferred the funds into his personal bank accounts between 2015 and 2023

Richard Shaw took the money from vulnerable claimants unable to handle their own finances (GMP/PA Wire)

A council employee who stole nearly £900,000 from the accounts of vulnerable benefit claimants to bankroll a lavish lifestyle has been sentenced to four years and eight months in prison.

Richard Shaw, 46, abused his position at Bolton Council to steal the substantial sum.

Shaw, who worked for the council’s financial protection team, was entrusted with managing state benefits for service users unable to handle their own finances and lacking other support.

Between 2015 and 2023, he systematically transferred the funds into his personal bank accounts.

Investigations launched in 2023 uncovered multiple bank transfers, totalling £893,296, directed to nine personal accounts held in his name, Bolton Crown Court heard.

During his arrest on suspicion of fraud by abuse of position and money laundering, authorities seized two BMW cars valued at nearly £120,000, along with other high-value items, including computers and bikes, from his home in Harrier Close, Bolton.

During the investigation, it was established that he spent £100,000 buying a holiday lodge in Ribble Valley, Lancashire, and almost £18,000 on garden improvements.

One of the BMW cars seized from Shaw (GMP/PA Wire)

More than £53,000 in payments to different women with references such as “treat”, “allowance”, “nice” and “ass” – which amounted to hundreds of pounds every week – were also made, the court heard.

He was sacked for gross misconduct in March 2023 when the council identified and reported the possible fraud to Greater Manchester Police.

Shaw pleaded guilty at an earlier hearing to one count of fraud by abuse of position.

Following sentencing, CPS specialist prosecutor Stephanie Pendered said: “Richard Shaw was entrusted with safeguarding the finances of some of the most vulnerable people in his community. Instead, he systematically stole from them over an eight-year period.

“His victims were people who relied on the council because they could not manage their own affairs. Shaw callously exploited that vulnerability, even targeting the accounts of deceased service users knowing they would be less likely to be checked.”

Detective Sergeant Daniel Sanchez, from GMP’s economic and cyber crime unit, said: “In his role as an appointee officer, Shaw was responsible for managing 120 client cases.

Investigations launched in 2023 uncovered multiple bank transfers, totalling £893,296, directed to nine personal accounts held in his name, Bolton Crown Court heard (Google Maps)

“Shaw abused his position of trust within the council by transferring clients’ money to accounts he had set up in his own name.

“His systematic theft and haphazard spending was uncovered by our financial investigator.

“There will now be a proceeds of crime hearing to reclaim the rest of the money so the council can be reimbursed.”

A spokesperson for Bolton Council said: “Bolton Council has robust measures in place to detect, prevent and deter corruption and this crime was first uncovered via our own internal safeguards.

“We have worked closely with Greater Manchester Police to build the case that has resulted in this sentence, which reflects the gravity and impact of the crime committed.

“Cases like this are exceptionally rare and the actions of one person do not reflect a wider workforce that is conscientious, diligent, and committed to public service.

“Any identified financial losses to individuals as a result of this fraud have been refunded by the council, and benefit losses rectified.”