Proceeds of Crime Act nets loan shark
12 Oct 05
Manipulative moneylender is first one convicted under Act
A 39-year-old man who lived a life of luxury despite claiming benefits for more than 10 years and never paying income tax has become the first loan shark to be convicted under the Proceeds of Crime Act.
The man, who cannot be named for legal reasons, is believed to have made more than £250,000 from moneylending between May 2003 and January 2004. He was found guilty of four charges - conspiracy to convert criminal property, engaging in activities requiring a Consumer Credit Act licence, possession of criminal property and conspiracy to handle stolen goods.
The accused was charging people living on the housing estates near his home in Dunstable, Bedfordshire, up to 1,300% interest rates. His clients included drug addicts and single mothers. He would make them hand over their benefit books to him as security, and take the money when it was collected. Some were ordered to steal to pay back what they owed.
Described by the prosecution as "manipulative, violent and dishonest", the accused's interest charges were 50% over two weeks, meaning that a £100 loan paid back over a year would cost the borrower £1,300.
Judge John Bevan QC remanded the accused into custody to be sentenced later this month. Proceedings may also be brought to confiscate the money and property believed to derive from his proceeds.