Crumbling concrete 'hits value' of home bought by gran who embezzled £1.5m, court hears

Lawyers acting for a grandmother in a £1.5m legal action are probing whether the discovery of unsafe concrete at her property has affected its value, a court heard.

Solicitor advocate Simon Collins told judge Lord Summers on Monday how he is investigating the impact that the discovery of RAAC at a house belonging to Coleen Muirhead.

Mr Collins is acting for Muirhead in a proceeds of crime action which has been brought against her by prosecutors at the High Court in Edinburgh.

The court had earlier heard how Muirhead, 56, had embezzled £1.5m from her bosses. She indulged in expensive holidays and bought cars and caravans after stealing the money over a six year period.

Judge Lord Fairley jailed Muirhead for three years and three months for the crime which took place whilst she was employed at Panda Rosa Metals in Aberdeen between June 2015 and October 2021.

Prosecutors have launched a bid to recover the sum stolen by using proceeds of crime legislation.

On Monday, Mr Collins told the court that RAAC concrete has been discovered at one of the properties which prosecutors claim was obtained from using the stolen money.

Hundreds of people living in Aberdeen are set to be moved “as soon as possible” following the discovery of reinforced autoclaved aerated concrete at houses in the city.

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.

Mr Collins told the court: “It is one of hundreds of property in Aberdeen to be affected by RAAC concrete.

“We are investigating as to the whether the value of the house has been dramatically affected by its discovery.”

At earlier proceedings, the court heard Muirhead admitting that she embezzling £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, a mother of four and grandmother to seven, admitted to police after her arrest that she was responsible for creating false accounts and stealing the money from the firm.

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 said: “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, 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.”

The court heard that the metal recycling firm ran two sites in Aberdeen and Muirhead 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 weighed. A ticket was produced which was sent to staff who provided an advice note of materiels, 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 to 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,” said the prosecutor.

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 systematic 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.”

On Monday, Lord Summers continued the proceeds of crime action to July 1, 2024.