Man who embezzled cash from Edinburgh charity will avoid jail if he pays money back
Edward McGregor took the money between 2006 and 2012.
The manager of a charity, who siphoned off £20,000 from the company, contributing to its collapse, has promised to pay all the money back within six months.
48 year old Edward McGregor was told by Sheriff Kenneth Maciver QC, sitting at Edinburgh Sheriff Court today (Aug 22), that if that happened, he would not impose a custodial sentence.
McGregor had pled guilty at Edinburgh Sheriff Court previously to embezzling the cash from Skillnet, a charity helping ethnic minority people to get employment, between July 2006 and August 2012. Sentence had been deferred for a background report.
Fiscal Depute, Tom Crosbie, had told Sheriff Maciver that Skillnet, who operated from premises in Albion Road in the city, had received funding from the Scottish Government, but that had ceased.
They found themselves in financial difficulties in 2012. McGregor told the company board that tax money had been due to HMRC. That was in July 2012 and no further inquiries were made by the Board. McGregor resigned in August.
Mr Crosbie said when Board members looked at the accounts they discovered that the money due to HMRC was still outstanding and had, in fact, increased.
Investigation showed that numerous payments had been made into a bank account held by McGregor. Some of the money transferred was in the form of inflated invoices. Skillnet, which was set up in 2002, went into liquidation.
Mr Crosbie commented: "Clearly the actions of the accused were a contributory factor".
Defence solicitor, Jim Stephenson, said his client had sold his home in Ayton in Berwickshire and was now living in rented accommodation. He had signed a cheque for £15,000 and, having obtained other employment, would pay back the remaining £5,000 within six months.
Sheriff Maciver was told that as the charity had been liquidated the money could not go to it, but under the Proceeds of Crime Act, the £20,000 would go to the Scottish Government and be used for other charitable purposes.
Mr Stephenson added that McGregor had no previous convictions and was considered as at low risk of re-offending.
Sheriff Maciver pointed out that Skillnet had received funding from the Scottish Government and he told McGregor: "You set up an account in another name and diverted funds to this account.
The matter came to light because HMRC were due money. It has now been agreed that the sum will be repaid to the Scottish Government and they will decide where it should be allocated and, as I understand it, it will be paid to good causes".
He added that if he imposed a custodial sentence now, the outstanding £5000 could not be repaid and therefor he would defer sentence for six months and, if the whole £20,000 was paid, would not impose a custodial sentence.