Former Bolton council worker jailed for stealing nearly £900,000 in benefits from vulnerable adults
Richard Shaw admitted transferring the money over eight years while managing finances for 217 people
A former Bolton Council worker has been jailed for defrauding almost £900,000 in Department for Work and Pensions benefits from vulnerable adults whose finances he was employed to protect.
Forty-six-year-old Richard Shaw, from Bolton, transferred £893,926.01 over an eight-year period while working in the council’s Financial Protection Team.
He was sentenced to four years and eight months behind bars at Bolton Crown Court.
Money diverted over eight years
Shaw was employed by Bolton Metropolitan Council initially as a Finance Officer before becoming an Appointee Officer in 2014.
His role involved managing state benefits on behalf of service users who were unable to manage their own finances and had no one else to assist them.
Between 5th May 2015 and 18th April 2023, he transferred money from council accounts and the personal funds of vulnerable service users into bank accounts belonging to himself, his wife and a joint account.
The court heard Shaw was responsible for managing the funds of 217 service users.
Forty-three of them were deceased, with funds awaiting transfer to their next of kin or the state.
He used his knowledge of the council’s financial systems to divert money into nine separate bank accounts.
Luxury spending uncovered
The stolen money was spent on luxury items including two BMW vehicles costing nearly £120,000, garden improvements worth almost £18,000 and holiday lodges in the Ribble Valley worth £100,000.
More than £53,000 was also paid to different women, with payment references including “treat” and “nice”, amounting to hundreds of pounds every week.
The fraud was uncovered in February 2023 after concerns were raised about accounts running unusually low.
Shaw was suspended and later dismissed.
When his personal locker was searched, officers found bank cards belonging to service users and a list of deceased clients.
CPS statement
Stephane Pendered from the Crown Prosecution Service 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.
"The CPS worked closely with Greater Manchester Police and Bolton Metropolitan Council to build a strong case that led to Shaw's guilty plea.
"We hope today's sentence provides some measure of justice for the victims and sends a clear message that those who abuse positions of trust will be held to account."
The CPS said confiscation proceedings under the Proceeds of Crime Act will now begin in an attempt to recover funds and assets linked to the offending.
Council welcomes conviction
A spokesperson for Bolton Council said: “The council welcomes the sentencing of Mr Shaw, a former employee in relation to charges of fraud.
“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.”