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Edinburgh 'madam' Margaret Paterson jailed for five years Edinburgh 'madam' Margaret Paterson jailed for five years
(35 minutes later)
An Edinburgh madam who made a six-figure fortune running a lucrative prostitution racket has been jailed for five years. An Edinburgh madam who made a fortune running a £1.2m prostitution racket has been jailed for five years.
Margaret Paterson and her business partner Robert Munro ran a brothel and escorts service from the capital.Margaret Paterson and her business partner Robert Munro ran a brothel and escorts service from the capital.
Munro was also sentenced to five years in prison. Munro was also sentenced to five years in prison and Ian Goalen, who acted as a driver for the business, was given 150 hours community sentence.
Ian Goalen, who acted as a driver for the business, was given 150 hours community sentence. Paterson spent almost £500,000 on designer goods and earned the nickname "Madam Moneybags".
Paterson, who was earlier found guilty of living off immoral earnings, spent almost £500,000 on designer goods and earned the nickname "Madam Moneybags" because of her habit of stashing large amounts of cash on her premises. She was found with more than £200,000 in cash in her west end home when it was raided by police and it was this habit of stashing vast amounts of money in her home earned her the nickname.
She was found with more than £200,000 in cash in her west end home when it was raided by police.
The High Court in Edinburgh was told that Paterson, 61, ran her operation from a base in the New Town with Munro, 61, who was found guilty of the same charge.The High Court in Edinburgh was told that Paterson, 61, ran her operation from a base in the New Town with Munro, 61, who was found guilty of the same charge.
Goalen, 59, had pleaded guilty to living off the earnings of prostitution then gave evidence against his former bosses.Goalen, 59, had pleaded guilty to living off the earnings of prostitution then gave evidence against his former bosses.
During a nine-year period, Paterson and Munro provided prostitutes all over Scotland. During a nine-year period, Paterson and Munro provided prostitutes all over Scotland and laundered £1.2m.
Goalen, a former bank manager from East Lothian, acted as a driver for the working girls in Edinburgh, West Lothian, Glasgow, Aberdeen and Newcastle Upon Tyne.Goalen, a former bank manager from East Lothian, acted as a driver for the working girls in Edinburgh, West Lothian, Glasgow, Aberdeen and Newcastle Upon Tyne.
However, it came to an end when police raided their premises in Edinburgh's Grosvenor Street in September 2011.However, it came to an end when police raided their premises in Edinburgh's Grosvenor Street in September 2011.
Officers found sex toys, designer shoes and evidence which showed Paterson had gone on a £461,604 spending spree in some of Edinburgh's most exclusive shops.Officers found sex toys, designer shoes and evidence which showed Paterson had gone on a £461,604 spending spree in some of Edinburgh's most exclusive shops.
Detectives found credit card records which detailed how she bought luxury items from Harvey Nichols, Louis Vuitton and Mulberry.Detectives found credit card records which detailed how she bought luxury items from Harvey Nichols, Louis Vuitton and Mulberry.
They found about 400 designer handbags piled 7ft high in a rear bedroom, still in the store plastic bags.
They also discovered 100 boxes of unused designer shoes.
Other items included:
She also purchased health care from the Spire hospital in Murrayfield, Edinburgh.She also purchased health care from the Spire hospital in Murrayfield, Edinburgh.
'Profit and power''Profit and power'
Det Supt Gordon said no trafficked women were discovered but evidence of a "large organised criminal business" was uncovered.Det Supt Gordon said no trafficked women were discovered but evidence of a "large organised criminal business" was uncovered.
He said: "It was planned and involved the use of a number of phones and drivers. They operated in Edinburgh, Glasgow and Aberdeen. Multiple mobile phones were used to control a network of sex workers.He said: "It was planned and involved the use of a number of phones and drivers. They operated in Edinburgh, Glasgow and Aberdeen. Multiple mobile phones were used to control a network of sex workers.
"They claimed it was an escort business offering companionship and friendship only, but a number of females were involved in prostitution."They claimed it was an escort business offering companionship and friendship only, but a number of females were involved in prostitution.
"The two motives across organised crime are profit and power. They made significant criminal profits from this venture and had significant control over the females.""The two motives across organised crime are profit and power. They made significant criminal profits from this venture and had significant control over the females."
Det Supt Gordon said Paterson was "well-known" in shops like Harvey Nichols as "someone who spent a lot of money".Det Supt Gordon said Paterson was "well-known" in shops like Harvey Nichols as "someone who spent a lot of money".
The trio were convicted of proceeds of crime and immoral earnings charges after a month-long trial at the High Court in Edinburgh.The trio were convicted of proceeds of crime and immoral earnings charges after a month-long trial at the High Court in Edinburgh.
Details only emerged after the conclusion of the trial as Judge Michael O'Grady, QC, passed a contempt of court order at the start of proceedings prohibiting reports of it until the trial had ended.Details only emerged after the conclusion of the trial as Judge Michael O'Grady, QC, passed a contempt of court order at the start of proceedings prohibiting reports of it until the trial had ended.
The jury spent three hours deliberating their verdict. They then returned unanimous verdicts on all charges.The jury spent three hours deliberating their verdict. They then returned unanimous verdicts on all charges.
After sentence, the Crown Office confirmed confiscation proceedings had been started against Paterson and Munro who together laundered more than £1.2million.
Financial affairs
Lindsey Miller, head of the Crown's serious organised crime division, said: "Margaret Paterson and Robert Munro exploited vulnerable women for their own profit, running a large network of prostitutes across Scotland, and laundering the proceeds of their criminal activities.
"This conviction demonstrates our commitment to bringing to justice those who exploit others and seek to benefit from crime.
"The conviction involves an aggravation under section 29 of the Criminal Justice and Licensing (Scotland) Act 2010; one of the new provisions to tackle serious organised crime. We will continue to use every power available to us to disrupt the activities of those who commit crime and exploit others for their own gain."
The Crown is also seeking a Financial Reporting Order (FRO) against Paterson and Munro which is aimed at enabling the monitoring of the financial affairs of an accused after conviction and intended to prevent further economic crime. They require a convicted criminal to report their financial details at regular intervals to the police.