A BUSINESSWOMAN and her two associates are facing lengthy jail sentences after being convicted of operating a lucrative prostitution racket.
Vice queen Margaret Paterson, 61, Robert Munro, 61, and Ian Goalen, 59, were found guilty of proceeds of crime and immoral earnings charges at the High Court in Edinburgh yesterday.
The trio operated a brothel and a nationwide escort business from a house in the Scottish capital's west end.
During a nine-year period, Paterson and Munro provided prostitutes for customers all over Scotland.
Their sidekick Goalen was a former bank manager who acted as a driver for the working girls while they plied their trade in Edinburgh, West Lothian, Glasgow, Aberdeen and Newcastle upon Tyne.
But their lucrative operation 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.
Detectives found credit card records which detailed how she had bought luxury items from Harvey Nichols, Louis Vuitton and Mulberry.
Policemen who searched Paterson's home also found £204,660 in cash.
They also discovered mobile phones which punters used to ring in order to book sessions with the prostitutes.
Detectives also discovered Paterson and Munro kept records of the men who were using their business.
The court heard how police discovered the former night manager of the George Hotel in Edinburgh, Roderick MacLeod, 45, used to phone the agency for guests who wanted to have sex with a prostitute.
Now the trio are facing lengthy jail sentences. Prosecutors have also notified them they will be subject to proceeds of crime proceedings.
Sentences on Paterson, Munro and Goalen have been deferred in order for the court to obtain reports about their characters.
But speaking after their conviction yesterday, temporary judge Michael O'Grady, QC, said: "These are serious offences."
The trio were convicted after a month-long trial at the High Court in Edinburgh.
Paterson, of Grosvenor Street, Edinburgh, and Munro, of Grosvenor Street, Edinburgh, and Goalen, of North Berwick, East Lothian, had originally pled not guilty to a total of seven charges.
Details of the case can only now be reported as Judge O'Grady passed a contempt of court order at the start of proceedings prohibiting reports of it until the conclusion of the trial.
Judge O'Grady granted bail to Paterson and Munro but on the condition they surrendered their passports.
James Mulholland
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