Stephen Crewdson, 46, from Manchester, was convicted of fraud and money laundering after charging Lancashire County Council for bogus construction work over five years.

Preston Crown Court heard that Crewdson arranged for building suppliers to bill the council for work that never existed. Money paid to the builders was then laundered through various bank accounts back to Crewdson.

In 2011, when HM Revenue and Customs investigators began to check suspicious transactions, Crewdson created his own fake business, BBM ENG, registered it for VAT via an accountant and attempted to justify further fake invoices and fraudulent VAT returns to disguise his crimes.

Sentencing Crewdson, Judge Knowles QC said: “You have been convicted on most overwhelming evidence and your brazen lies.

“You were in breach of trust at LCC and of the public of Lancashire. You have used two local business, generated bogus invoices and tried to cover your tracks. The people of this county, taxpayers, are your victims and all to satisfy your greed.”

Crewdson will now face legal action to recover the stolen money.

Sandra Smith, Assistant Director, Fraud Investigation Service, HMRC, said: “As a council employee, Crewdson was in a privileged position approving supplier’s invoices.

“He abused this position of trust and was well aware that he was breaking the law. He made a deliberate attack on council funds at the expense of UK taxpayers.”

A spokesperson for Lancashire County Council said: “We are pleased with the verdict and that this matter has been resolved. The county council takes fraud extremely seriously and we have worked closely with the police and HMRC to help bring this successful prosecution.”