Former council worker jailed for £900k fraud spent stolen cash on Lancashire holiday lodge
A former council employee who stole nearly £900,000 from vulnerable benefit claimants used part of the money to buy a holiday lodge in Lancashire, a court has heard.
Richard Shaw, 46, of Harrier Close, Bolton, was sentenced to four years and eight months at Bolton Crown Court today (February 18) after admitting fraud by abuse of position.
The court heard Shaw transferred £893,296 from client accounts into his own bank accounts between 2015 and 2023 while working for Bolton Council’s financial protection team, managing benefits for people unable to handle their own finances.
He failed to attend a crown court hearing in September 2025 and was arrested by police later the same day in Blackpool. He had been held on remand since.
A lengthy investigation by Greater Manchester Police’s economic and cyber crime unit found Shaw had been siphoning money for years and moving funds between client accounts in an attempt to conceal the fraud.
Investigators uncovered transfers to nine personal accounts in his name, including more than £250,000 into one account and £215,000 into another.
His failure to act in clients’ best interests is estimated to have cost them £129,749 in unclaimed benefits.
During the investigation officers seized two BMW cars and several high-value items, including computers and bikes, from his home.
It was also established he spent £100,000 buying a holiday home in Lancashire and nearly £18,000 on garden improvements.
Detective Sergeant Daniel Sanchez said: “We carried out a thorough and meticulous two-year investigation into Shaw in conjunction with Bolton Council.
“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 fraud was first uncovered through the authority’s own internal safeguards and described cases like this as “exceptionally rare”.
They added that any financial losses to individuals had been refunded and benefit losses rectified.