A top Scottish businesswoman “deliberately and cynically” fiddled two young employees out of half their wages, a sheriff has ruled.

Diane Paterson, a pillar of the Central Scotland business community, deprived the “vulnerable” youngsters of thousands of pounds.

Ecosse Automotive, a garage firm she set up with her husband in 1997, once won the LiveWire award for best new business and appeared on 258 magazine covers.

But yesterday, Paterson, 42, was sentenced for a scam that saw her dupe two trainees who joined the Bo’ness firm as part of a council job scheme.

Falkirk Sheriff Court heard how Paterson lied to them when she said the cash received under the scheme did not cover expenses and that they were liable to reimburse her.

Paterson was found guilty of fraud in January.

The court found she had “demanded and collected monies to which she knew she was not entitled” from the two young people employed under the scheme for “non-existent expenses and non-existent training programmes”.

The offence was committed between October 2013 and November 2014.

Paterson had denied the charge.

Defence agent Mike Lowrie asked for his client to be spared jail.

He said: “The consequences of her removal in whatever shape or form will significantly impact on the business.”

He added that Paterson was “significantly involved” in the care of her 51-year-old blind, disabled sister.

He said Paterson was “acutely aware” of the court’s powers and recalled the sheriff’s parting words after her trial that she should be “prepared for the worst”.

Sheriff Craig Caldwell sentenced Paterson to carry out 250 hours of unpaid work, and ordered her to pay compensation of £2,000 each to the two young people she defrauded.

Paterson wept in the dock as the sheriff told her: “You were found guilty of conceiving a scheme to deprive two young people placed with your company by a local authority arrangement of sums equivalent to approximately half their weekly wages such that the amount you left them with was no more than they would have received had they continued on benefits.

“Given your background in business and in the local community it is very difficult to understand why you would have engaged in such conduct.

“I can only conclude that you believed that these were vulnerable young people who wouldn’t know any better and would be easy targets for your dishonesty and greed.

“Not only have you deprived these young people of their income, but you have also brought into disrepute a valuable local authority scheme to provide unemployed young people in the community with work and prospects. It seems to me that you deliberately and cynically manipulated that scheme for your own financial gain.

“The gain was not insignificant. However, given your background and lack of offending history, there is no focus for imposing a custodial sentence, and I will impose a community payback order.

“That sentence is a direct alternative to custody.”

Sheriff Caldwell said that when Paterson was interviewed by social workers as part of background enquiries, she had “set her face against” paying compensation.

He said: “She told the social worker she was reluctant to agree to a compensation order and she did not believe she had caused any monetary loss.”

He warned her that if she did not comply with the order she would be brought back to court and sentenced afresh.