Richard Shaw, 47, spent the money on luxuries for himself including two BMWs, a surround sound system and around £50,000 on “female friends”.
Bolton Crown Court heard how he had worked with some of the borough’s most vulnerable people while working first as a finance officer than as an appointee officer.
Holly Nelson, prosecuting, said: “His latter role was to manage and maintain state benefits for service users; those in receipt of state benefits from the DWP.
“The defendant ought to have managed the benefits to ensure the funds were spent in the recipient’s best interests.
The case was heard at Bolton Crown Court (Image: Anthony Moss)
“Those using the service are unable to manage their finances themselves, and are without an alternative person to assist them in that regard.”
Dressed in a plain dark grey top Shaw looked on in silence via video link from HMP Altcourse as Ms Nelson told the court how he stole a total of £893,296.01.
Shaw had transferred the money into various different bank accounts between May 2015 and April 2023.
During that time his team had 537 active service users, 122 of them dead, while Shaw himself was a case worker for 217 service users, 43 of them dead.
In the case of dead service users, their funds were waiting to be given either to their next of kin or back to the state.
Shaw had bought two BMWs with the money (Image: GMP)
Shaw first became an acting appointee officer in 2014, having previously been a finance officer since 2006, and then took on the role on a permanent basis in 2017.
Ms Nelson said that his fraudulent activity increased in “intensity and quantity” after his promotion.
Having co-authored an appointee charging policy, Shaw then had detailed knowledge of how the system worked and was able to exploit it to divert funds to himself.
Ms Nelson said: “The defendant was fulfilling these roles in safeguarding vulnerable service user’s funds whilst funnelling those very same funds into his own bank accounts.”
Shaw’s luxury items included two BMWs (Image: GMP)
She said he was “a financial wolf in sheep’s clothing within Bolton Metropolitan Council.”
But Shaw was stopped in his tracks in 2023 after a council officer noticed that funds seemed to be running unusually low.
He was first suspended in February of that year before being sacked the following March with an investigation then taking place.
Shaw’s personal locker was searched that April where personal bank cards of service users were found along with prepaid financial services cards.
One of the BMWs Shaw spent the money (Image: GMP)
There was also an envelop with a service user’s first name and “£510.80” written on it but only £4 left inside and a list of dead service users.
A police investigation uncovered the scale of Shaw’s thefts and on searching his home on Harrier Close, Lostock they found evidence of the luxuries he had been using the money for.
Ms Nelson said officers found he appeared to have spent the money on two BMWs, jewellery, a surround sound system, expensive bicycles and a laptop.
He also appeared to have paid nearly £100,000 to a company selling holiday lodges in the Ribble Valley and a total of £53,000 on “third party payments to women”.
Arrested and interviewed, Shaw confirmed that he had transferred money to his own bank account.
When asked what he spent the money on he told the officers “I don’t know to be quite honest” but denied gambling.
Shaw pleaded not guilty when brought before the magistrates court but confessed to a single count of fraud at the crown court.
Ms Nelson said that a victim impact statement from Bolton Council provided by director of adult services Rachel Tanner spoke of the “loss of trust in the council” Shaw had caused.
She said: “She describes the lasting effect on service users, stakeholders and council tax-payers, and that impacts the council’s ability to safeguard finances and discharge statutory functions moving forward.”
Eleanor Bramble, defending, said Shaw had earned credit for his guilty plea and said he had “put his head in the sand” before confessing to his crime.
She said he had since separated from his wife and had since shown real regret and remorse.
But Recorder Michael Hayton KC said that the description of Shaw as a “financial wolf in sheep’s clothing” was “apt”.
He said that Shaw’s actions over many years “amounts to a disgusting betrayal” of the trust put in him.
Recorder Hayton noted the “luxury lifestyle” Shaw had used the money for, including the BMWs, a holiday home, bicycles and £100s a week on “female friends”.
He said: “You stole from the most vulnerable, you stole from the community at large and all without any apparent explanation.
Recorder Hayton accepted Shaw was now a “broken man” having separated from his wife but said he had brought this on himself.
He said this has been spent “simply on high living”, on “cars, bikes, computers and women”.
Shaw showed no visible reaction as Recorder Hayton handed down a sentence of four years and eight months.
Speaking after the hearing, Detective Sergeant Daniel Sanchez, from Greater Manchester Police’s Economic and Cyber Crime Unit, said: “We carried out a thorough and meticulous two-year investigation into Shaw in conjunction with Bolton Council.
“Concerns were raised in February 2023 about some of the accounts managed by Shaw.
“The accounts were unusually low, running out of funds, and irregular transactions had been noted.
“Shaw was subsequently suspended while a disciplinary investigation was completed and dismissed for gross misconduct on March 31, 2023.”
He added: “Our team remained in close contact with the local authority, who assisted us throughout the investigation.
“In his role as an appointee officer, Shaw was responsible for managing 120 client cases.
“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.
“He had around 50 bank accounts, two of the accounts had more than £200,000 in them.
“There will now be a Proceeds of Crime hearing to reclaim the rest of the money so the council can be reimbursed.”
Shaw is expected to face a Proceeds of Crime Act mention hearing on November 9 this year.
A Bolton Council spokesperson 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.”