Former council employee jailed for stealing £900,000 from client accounts

A former council employee has been jailed after admitting stealing almost £900,000 from council accounts.

Richard Shaw (10/07/1979), of Harrier Close, Bolton, transferred £893,296 to himself from benefit claimants’ accounts held by Bolton Council between 2015 and 2023.

He was jailed for four years and eight months at Bolton Crown Court today (18/2/26).

Shaw had been managing the accounts as part of the council’s Financial Protection Team but was suspended when mismanagement of appointeeship cases was discovered and subsequently sacked for gross misconduct in March 2023 when the council identified and reported the possible fraud to GMP.

A lengthy investigation by our Economic and Cyber Crime Unit, with the full co-operation of the council, showed that Shaw had been transferring the money to his own accounts for a number of years.

He also transferred money between clients’ accounts in an attempt to hide his fraud.

He failed to attend his first crown court appearance on 23 September 2025 and was arrested by our officers on the same day in Blackpool. He had been on remand since that date.

He initially denied fraud by abuse of position but changed his plea to guilty at Bolton Crown Court in December 2025.

Investigations in 2023 showed several bank transfers to nine personal accounts held in Richard Shaw’s name.

Just over £250,000 was transferred to one account, and £215,000 to another.

It is estimated to Shaw’s failure to act in the best interest of his clients meant he lost them a total of £129,749 in unclaimed benefits

Two BMW cars and several high-value items, including computers and bikes, were seized during a warrant at Shaw's home address on 27 April 2023 when he was initially arrested on suspicion of fraud by abuse of position and money laundering. 

Detective Sergeant Daniel Sanchez, from our 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 31 March 2023.”

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

DS Sanchez 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.

“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: “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.”