A Bolton Council employee who systematically stole nearly £900,000 from vulnerable benefits claimants over eight years has been jailed for four years and eight months after spending tens of thousands on payments to women and targeting accounts of deceased service users.
Richard Shaw, 46, exploited his position in the council’s financial protection team by transferring clients’ money to nine accounts he had set up in his own name between 2015 and 2023. The fraud emerged in February 2023 when colleagues noticed accounts Shaw managed were unusually low, running out of funds with irregular transactions.
CPS specialist prosecutor Stephanie Pendered stated: “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.”
Pendered added: “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.”
Shaw’s spending spree included payments exceeding £53,000 to different women with references such as “treat”, “allowance”, “nice”, and “a**”, which amounted to hundreds of pounds weekly. He purchased two BMW cars worth an estimated £120,000, spent approximately £100,000 on a holiday lodge in the Ribble Valley, and invested nearly £18,000 on garden improvements.
Officers seized the BMWs, computers and bikes when searching Shaw’s home in Harrier Close, Bolton. He was arrested on suspicion of fraud of position and money laundering following the discovery of bank transfers totalling £893,926.
Detective Sergeant Daniel Sanchez from Greater Manchester Police’s economic and cyber crime unit stated: “We carried out a thorough and meticulous two-year investigation into Shaw in conjunction with Bolton Council.”
Shaw managed 120 client cases during his tenure in the financial protection team, working with people who were unable to manage their own finances and did not have anyone to support them. His role required safeguarding the most vulnerable members of the community, making his systematic theft a profound breach of trust.
DS Sanchez explained: “Shaw abused his position of trust within the council, 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.”
Shaw pleaded guilty to one count of fraud by abuse of position at Bolton Crown Court. The detective sergeant confirmed there will now be a proceeds of crime hearing to reclaim the remaining money and reimburse Bolton Council.
A Bolton Council spokesman stated: “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.”
The council emphasized 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.”
The spokesman confirmed: “Any identified financial losses to individuals as a result of this fraud have been refunded by the council, and benefit losses rectified.”
The proceeds of crime hearing will determine what assets remain available for seizure and how much can be recovered to reimburse the council for losses incurred through Shaw’s eight-year fraud. The hearing represents the final stage in efforts to reclaim funds stolen from some of Bolton’s most vulnerable residents.
