The value of a house allegedly purchased by a crooked Aberdeen granny using her ill-gotten gains could be impacted by the discovery of unsafe concrete, a court has been told.
Prosecutors are trying to claw back some of Coleen Muirhead’s £1.5 million fortune that the scrap metal merchant employee embezzled from her bosses at Panda Rosa Metals.
But lawyers acting for the 56-year-old told a proceeds of crime hearing today they’re probing whether the property is now worth less because of the recent find.
Solicitor advocate Simon Collins told the High Court in Edinburgh that he’s investigating the potential consequences of finding Reinforced Autoclaved Aerated Concrete (RAAC).
Around 500 homes in the city’s Balnagask area – including 364 council properties, of which 299 are occupied by tenants – contain the porous material that can structurally fail when exposed to moisture.
In September last year, judge Lord Fairley jailed Muirhead for three years and three months after her greedy crime that she committed between June 2015 and October 2021.
Coleen Muirhead’s home among hundreds of Aberdeen properties impacted by dodgy concrete
The court had previously heard how Muirhead indulged in expensive holidays and bought cars and caravans after stealing the money over a six-year period.
After the mother of four and grandmother to seven was locked up, prosecutors then launched a bid to recover the sum by using proceeds of crime legislation.
On Monday, Mr Collins told the court that RAAC concrete had been discovered at one of the properties which prosecutors claim was obtained from using the stolen money.
The material was widely used in construction between the 1950s and 1990s but is now thought to pose risks of causing buildings erected with it to collapse.
Aberdeen City Council has set aside £3m to begin moving their affected tenants into new accommodation.
Speaking about his client’s house, Mr Collins told the court: “It is one of hundreds of properties in Aberdeen to be affected by RAAC concrete.
“We are investigating as to whether the value of the house has been dramatically affected by its discovery.”
At earlier proceedings, the court heard Muirhead admitting that she embezzled £1,524,192.37 while employed at Panda Rosa Metals, in Canal Road, Aberdeen, between June 2015 and October 2021.
As Muirhead’s crime was uncovered, she wrote to a colleague and said: “Police have just raided! So I will need a visitor in jail! Please don’t think the worst of me.”
When the colleague expressed confusion Muirhead responded: “Don’t be I have taken the money am so sorry.”
Muirhead, of Farquhar Road, Aberdeen, admitted to the police after her arrest that she was responsible for creating false accounts and stealing money from the firm.
‘Law-abiding’ Muirhead’s criminal greed ‘escalated quickly’
Defence solicitor advocate Kris Gilmartin said: “On the face of it, it is difficult to fathom why the offence was committed. She was previously a law-abiding citizen”.
But Mr Gilmartin said the social work report prepared on her set out “significant childhood trauma” and difficulties in her upbringing.
“She had used alcohol and gambling as a coping mechanism,” he told the court.
He said that, following the death of her father, her drinking and gambling increased as did her offending.
Mr Gilmartin said: “This offending behaviour started off as a small matter and escalated quickly”.
He added: “The report makes clear she is remorseful and she regrets the offending. She acknowledges she has brought shame to her family.”
He said she sought to apologise to the McAllister family, who own and operate the business, and who gave her employment in their firm.
Mr Gilmartin said: “She is fearful of custody, but accepts she committed the offence and requires to be punished.”
Aberdeen swindler treated herself to expensive holidays and new motor vehicles using ill-gotten gains
The court heard that the metal recycling firm ran two sites in Aberdeen and Muirhead had worked with the firm as an administrative assistant since July 2014.
Prosecutor David Dickson said scrap metal was brought to the sites by firms and individuals and then weighed.
A ticket was produced which was sent to staff who provided an advice note of materials, weight and price.
Sellers then sent an invoice for payment.
Mr Dickson said: “During the course of the years following the accused beginning employment with Panda Rosa, another employee, who was responsible for instructing payment of the accused’s wages, became aware that she went on expensive holidays with her family, paid for a full table at a charity event, purchased alcohol for those attending the event and bought new motor vehicles.
“The accused also told her that she had paid for her son’s wedding, had purchased static caravans and had set up ISAs for her grandchildren,” the prosecutor said.
Evidence uncovered during police search landed Aberdeen granny in the dock
Her embezzlement came to light after a senior partner in the firm reviewed records and concluded that something was not right.
She began looking for information for ‘G Anderson’ who appeared to be a significant customer but turned out to be an invention of Muirhead.
Police were contacted and a search of her home was carried out.
Mr Dickson said: “Documents in relation to credit cards, financial letters relating to the purchase of motor cars and motorcycles, documentation relating to ISAs for family members, £2,312 in cash, £3,300 in gift vouchers and documentation in relation to the purchase of two static caravans to the value of £78,077 were recovered”.
Lord Summers continued the proceeds of crime action to July 1 2024.
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