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A PENSIONER accused of running a prostitution racket from a New Town flat spent almost £600,000 on perfume, handbags, shoes, jewellery and private health care, a court has heard.  Margaret Paterson is alleged to have blown cash from the sex-for-sale business on luxury and household items bought at Harvey Nichols, Marks and Spencer at The Gyle and the Spire hospital at Murrayfield.

The 60-year-old is charged with going on spending sprees at the Louis Vuitton and Mulberry departments inside the St Andrew Square store using money made from a brothel based in Grosvenor Street.

Paterson, who went on trial at the High Court in Edinburgh yesterday with two men, is alleged to have been found in possession of more than £200,000, as well as cash in other currencies. Prosecutors allege over a ten-year period between September 16, 2001 and September 7, 2011, at Grosvenor Street and elsewhere, Paterson exercised control, direction or influence over the movements of four prostitutes called Claire Cairns, Kellie Anne Bolton, Helen Kinnon and Vikki Harkness. Paterson’s role did “aid and abet or compel their prostitution with other persons”, according to the charges.

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