Wealthy criminals targeted under dirty money laws have failed to hand over almost £10 million of their ill-gotten gains.
Fraudsters, drug dealers and money launderers still owe cash years after confiscation orders were imposed on them by courts.
Scottish Courts and Tribunals Service (SCTS) figures released under freedom of information laws show that there is £9,710,579 outstanding in confiscation orders imposed under the Proceeds of Crime Act. Almost £3.3 million is owed by just 10 people.
READ MORE – Coleen Rooney’s grim reaction to husband Wayne’s ‘devastating’ sacking
READ MORE – One of UK’s longest missing person cases solved after woman found 52 years later
Money recovered through criminal enterprises is invested in community projects across Scotland.
One of the largest amounts outstanding is from a £1 million confiscation order handed out to Edinburgh brothel boss Margaret Paterson in May 2015.
Paterson, who was dubbed ‘Madam Moneybags’, died aged 66 in September 2019 having paid just £219,559 of the £1 million. Prosecutors are trying to recover the money from her estate.
In 2013 she was sentenced to five years in prison after being convicted for brothel-keeping, money laundering and living on the earnings of prostitution.
Jacqueline McPhie, 54, who was jailed for embezzling more than £1.3m from her employers, was ordered to pay back £587,434 in November 2016 but has so far stumped up only £33,715.
She took the money while vice president for finance at Altus Intervention in Aberdeen between March 2013 and April 2014.
McPhie diverted money from the business, which supplies equipment for North Sea oil and gas projects, to fund a luxury lifestyle and was jailed for three years and four months.
Liam Kerr MSP, the Scottish Conservative justice spokesperson, said: “These eye-watering sums owed by criminals confirm the SNP just isn’t serious about getting money back from the proceeds of crime.
“Offenders are getting away with ignoring fines handed down to them which is just typical in the SNP’s soft-touch justice system.
“This is money extracted by dangerous, organised criminals from communities and victims ` they must be forced to pay it back in full.
“Ministers must finally get a grip on this issue and give police and courts the resources they need to make criminals pay these fines.”
Pauline McNeill MSP, Scottish Labour’s justice spokesperson, said: “At a time when our legal and policing system is creaking at the seams, it’s shocking that criminals are getting away with not paying money they owe to society.
“The SNP must work with the UK government and the justice system to ensure that these individuals pay up and face the full consequences of their crimes.”
Other amounts outstanding include a £207,339 confiscation order handed down to VAT fraudster Michael Voudouri, 57, in May 2015.
He was granted early release in 2019 from an 11-and-a-half year jail sentence for laundering the proceeds of a huge VAT fraud and breaching bail by going on the run to Cyprus.
An SCTS spokesman said: “By its nature, a confiscation order is a financial penalty that may take some time to recover in full.
“Where a confiscation order has been made by the court following conviction, the enforcement process is directed by the court.
“The period within which financial penalties should be paid is a matter for the judiciary.
“If an offender defaults in the payment of a confiscation order he or she may be called back before the court for further consideration of the payment terms, at which time any further enforcement procedure will be considered.
“This may include, for example, the appointment of an administrator who will assist in the ingathering and management of realisable property.”
A Scottish Government spokesperson said: “When a confiscation order is made, payment of the order is supervised by the court.
“Where payment is not made within the time specified by the court, further action to recover the outstanding balance can be taken by the courts.”