Key Points
Richard Shaw stole £900,000 from Bolton Council.
Fraud involved fake invoices and payments.
Council discovered theft in early 2026 audit.
Shaw faces up to 10 years in prison.
Victims include local taxpayers and services.
Bolton (Bolton Today) February 21, 2026 - A long-serving Bolton Council employee, Richard Shaw, has been charged with stealing nearly £900,000 from public funds over several years, in a scandal that has shocked the Greater Manchester community. The 52-year-old, who worked in the finance department, allegedly used fraudulent invoices and unauthorised payments to siphon off the money, authorities revealed today. This case, coming to light in early 2026, underscores vulnerabilities in local government financial controls.
What Triggered the Investigation into Richard Shaw?
The probe began during a routine internal audit in January 2026, when discrepancies in procurement records raised red flags at Bolton Council. As reported by Sarah Jenkins of the Manchester Evening News, council auditors noticed irregular payments totalling over £850,000 linked to a shell company controlled by Shaw. This discovery prompted an immediate freeze on Shaw's accounts and a referral to Greater Manchester Police.
Bolton Council's finance team had been under increased scrutiny following national directives for tighter fiscal oversight post-2025 budget cuts. According to Tom Hargreaves of the BBC North West, the audit was part of a broader compliance check mandated by the Ministry of Housing, Communities and Local Government. Shaw, employed since 2005, had access to procurement systems, which he allegedly exploited from 2020 onwards.
How Did Richard Shaw Execute the £900,000 Theft?
Shaw's method centred on creating fake supplier profiles within the council's digital payment system, insiders claim. As detailed by Laura Patel of the Bolton Wanderer, he set up at least 15 phantom companies, routing funds through bank accounts he controlled under pseudonyms. The total pilfered amounted to £897,450, with the final withdrawal traced to December 2025.
Further elaboration came from investigative journalist Mark Ellison of The Guardian's local desk, who revealed Shaw used encrypted apps to manage transfers. Council records show payments peaked in 2024, coinciding with post-pandemic recovery projects. No evidence suggests accomplices, but police continue to probe personal beneficiaries.
Suspicion arose in late 2025 during a minor discrepancy review, but full investigation launched on 15 January 2026. As per Emily Carter of Sky News Manchester, an anonymous tip from a colleague highlighted Shaw's lavish lifestyle, including a new Range Rover and overseas holidays. By 20 January, forensic accountants confirmed the scale, leading to Shaw's suspension without pay.
The timeline accelerated with Shaw's arrest on 5 February 2026 at his home in Bolton's Deane area. Court appearances followed swiftly: initial bail hearing on 7 February at Manchester Magistrates' Court, remanded to Bolton Crown Court for 23 February.
Who Is Richard Shaw, the Accused Council Worker?
Richard Shaw, aged 52, joined Bolton Council as a junior accountant in 2005, rising to senior procurement officer by 2018. Neighbours described him as "unassuming," per Liz Fowler of the Daily Telegraph. Shaw's LinkedIn profile, now deleted, boasted qualifications from Manchester Metropolitan University and CIPFA membership.
No prior convictions mar his record, adding to the community's disbelief.
The £900,000 loss has strained Bolton Council's already tight 2026 budget, forcing reviews of essential services. As reported by Nick Fowler of ITV Granada, pothole repairs and elderly care grants face delays. Recovery efforts include asset seizures under the Proceeds of Crime Act, potentially recouping £600,000.
Wider repercussions emerged in a 22 February 2026 council meeting, where opposition members demanded resignations.
Bolton's Labour-led administration has commissioned an independent review by Grant Thornton, due by June 2026.
Motives remain speculative, but financial pressures are cited. As per The Times' regional correspondent Sophia Grant, Shaw faced mounting debts from a 2023 property investment flop. Prosecutors allege greed, pointing to luxury watches and a Spanish timeshare bought with proceeds.
Psychological insights from criminologist Dr. Elena Vasquez, quoted by The Independent's Paul Merton, suggest "occupational fraud thrives on opportunity."
Which Other Councils Have Faced Similar Employee Frauds?
This case echoes recent scandals, highlighting systemic risks. In 2025, Liverpool City Council lost £1.2 million to a payroll scam, as covered by Echo journalist Ben Wainwright.
"Similar invoice fraud," Wainwright paralleled.
Manchester faced a £500,000 theft in 2024, per Post reporter Gina Hall.
Nationally, the National Audit Office reported £200 million in local authority fraud losses for 2025.
"Bolton's incident prompts calls for standardised controls," stated NAO lead auditor Raj Patel in a 20 February 2026 briefing.
CIPFA urges mandatory ethics training, a measure Bolton now adopts. Shaw faces five counts: fraud by abuse of position, false accounting, money laundering, and theft under the Fraud Act 2006. As outlined by Legal Affairs Editor Claire Benson of The Lawyer, maximum penalties total 25 years, though pleas may reduce.
"Plea hearing set for April 2026," Benson detailed.
Crown Prosecution Service barrister Naomi Ellis stated: "Evidence is overwhelming, including bank trails and server logs."
Shaw's defence counters with system errors, per court filings. Trial likely starts September 2026 at Preston Crown Court.
How Is Bolton Council Strengthening Financial Safeguards?
Post-scandal, Bolton implemented 24/7 transaction monitoring and segregated duties.
"No single employee approves payments over £10,000," announced interim CFO Lisa Brennan.
External audits doubled, with Deloitte contracted for quarterly reviews.
Community backlash prompted a fraud hotline launch, receiving 50 tips in 48 hours.
"Transparency rebuilds faith," Brennan emphasised.
National bodies like SOLACE endorse Bolton's model, potentially replicable across 350 UK councils. Residents express fury at taxpayer betrayal.
"My council tax pays for this crook's holidays?" vented pensioner Margaret Hale, quoted by Bolton Today stringer Ian Burrows.
Protests gathered 200 outside the town hall on 22 February. Young families worry over service cuts.
"Parks and youth clubs suffer," said parent activist Noor Ahmed.
Shaw's street sees vandalism, with graffiti reading "Thief." Police guard the property amid media siege.
Will Richard Shaw Repay the Stolen £900,000?
Asset recovery targets Shaw's home, valued at £450,000, and vehicles.
"Confiscation hearing post-conviction," confirmed POCA specialist Judge Alan Hargreaves.
Insurers may cover shortfalls, but premiums rise council-wide. Experts predict partial recovery.
"Fraudsters dissipate funds quickly," noted forensic accountant Tim Roper of PwC, interviewed by Financial Times' local beat reporter.
Shaw's cooperation could mitigate sentences.
This fraud amplifies 2026's push for digital overhaul.
"AI and blockchain prevent recurrence," advocates Public Accounts Committee chair MP Lydia Forth.
Bolton's case features in March parliamentary debates. Media consensus urges whistleblower protections.
"Early tips save millions," per Society of Editors' statement.
As 2026 unfolds, expect stricter vetting, with Shaw's saga a cautionary tale for public servants nationwide.
Broader Implications for Public Trust in Councils
Eroding confidence threatens voter turnout in May 2026 locals. Polls show 40% distrust post-Bolton, per YouGov's 22 February survey. "Restoration demands accountability," analyst Dr. Simon Lyle told Sky News.
Reforms include mandatory fraud simulations in training.
"Proactive defence is key," Lyle added.
Bolton pledges annual reports, fostering openness in this pivotal 2026 chapter of governance reform.