An Aberdeen City Council worker who lived a lavish lifestyle while embezzling more than £1m over 17 years has been ordered to pay back £104,000 to his former employer.

Michael Paterson, 60, exploited his position as a council tax and recovery team leader to keep taking the money between 2006 and 2023 until suspicions were finally raised.

Paterson – who admitted the crime – was jailed for four years last year.

Prosecutors raised a proceeds of crime action, and more than £167,000 will be seized from Paterson – with £104,000 being paid back to Aberdeen City Council from the funds recovered.

A total of £417,523 has already been recovered by Aberdeen City Council from Paterson’s pension fund.

Paterson started working for the local authority in 1988, and rose through the ranks to become council tax and recovery team leader.

He had unsupervised authority to issue council tax refunds of up to £3,000, and could also alter payee account details without authorisation or verification, which he did to transfer money to himself.

He realised that he could benefit in situations where a householder had left a property and had not reclaimed for overpayment of their council tax.

Paterson had started the embezzlement as he was worried about debts.

However he would instead spend the money on foreign holidays, eating out, and technology – particularly Apple goods – as well as maintenance of his home.

On Monday at the High Court in Edinburgh, the Crown and defence agreed to bring the matter to an end.

Prosecutor Bryan Heaney said that Paterson had made £1,184,000 from his criminal activities.

Mr Heaney said that prosecutors could seize £167,698.71 from Paterson – and £104,000 of that was to go to Aberdeen City Council as compensation.

Paterson sold a house in order to raise the cash he gave to the local authority, judge Lord Summers heard.

Sineidin Corrins, depute procurator fiscal for specialist casework at the Crown Office and Procurator Fiscal Service (COPFS), said Paterson had committed an “egregious betrayal of trust”.

She added: “Confiscation orders have ongoing financial consequences, meaning we can seek to recover further assets from this individual in the future to ensure he pays back the full amount.”