The other face of RBS: shareholder who turned to crime

ON THE day RBS chief executive Stephen Hester spoke out, a primary school clerk admitted embezzling thousands of pounds from his work because his £40,000 investment in the Royal Bank lost more than 90 per cent of its value during the banking crash.

David Burns had worked for 20 years as clerical officer at Elie Primary School in Fife. But when his shares in the failed bank – then under the control of Fred Goodwin – plummeted in value, he turned to embezzlement.

Cupar Sheriff Court heard yesterday that over a period of more than a year he used a school bank card – normally used to by books and stationery – to withdraw cash for himself.

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Fiscal depute Derek Robertson said: “The accused had a school purchasing card from RBS allowing items to be purchased for school use.

“A business manager at Fife Council became aware of cash withdrawals being made during the school summer holidays.

“When the head teacher was contacted the head had no knowledge of these transactions.

“The accused was interviewed by the head teacher and business manager where he admitted making the withdrawals.”

The court heard Burns was then interviewed by police, and said he had taken the money for personal financial reasons, but did not elaborate further.

Mr Robertson said: “The money was taken across 31 transactions. When asked about his financial problems he said it was just for everyday living expenses. The accused was suspended and it is anticipated he will be dismissed.”

Burns, 61, of Wadeslea, Elie, Fife, pleaded guilty to embezzling £3,010 at Elie Primary School between 29 May 2010 and 27 July 2011.

His defence lawyer, Raymond Wachtel, said Burns had supported himself, his wife and family from his wage from the school as well as a dividend from 6,000 shares he owns in RBS. They had traded at £7 a share before the banking crash but are valued at less than 30p now.

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Mr Wachtel said: “He normally received up to £2,000 a year from these shares but that is not the case now. When the bank crash came he lost most of his investment. It is now worth around £3,000 – he lost 90 per cent. Because of the loss of income he started dipping in to money with the bank card he had from the school.”

Sheriff Derek O’Carroll ordered Burns to repay the £3,010 within a month and carry out 100 hours unpaid work.