When he was investigated, Berg was found to have around £200,000 in capital. Along with his own flat, his total worth was around £500,000.
Anyone with savings of more than £16,000 is not eligible for council tax benefit.
Deputy council leader Paul Brant, who has responsibility for finance, said: “Every penny claimed fraudulently is a penny less that can be used for people who are genuinely in need.
“During these difficult economic times, it is more vital than ever that benefits go to those who are eligible.
“We will not hesitate to investigate and take action against people where we believe they have lied and cheated in order to claim benefits.
“If people think they may be mistakenly receiving benefits they aren’t entitled to, they should get in touch with us to discuss it as soon as possible.”
