Preston Loan Shark Jailed
Records seized showed that victims were charged £60 interest for every £100 borrowed and that loans had been issued to at least 142 individuals.
Fifty eight year old David Jackson who operated an illegal money lending business in Preston, has been sentenced to two years in jail following a hearing at Preston Crown Court.
Mark Hayhurst, aged 33, who worked for Jackson, was given a nine-month sentence, suspended for two years and ordered to do 150 hours of unpaid work.
Mr Jackson, of Cabo Roig, Alicante, Spain and Mr Hayhurst, of Garsdale Road, Ribbleton, Preston were investigated by the England Illegal Money Lending Team working in partnership with Lancashire County Council and Lancashire Police.
On behalf of the prosecution, Ben Mills told the court how Jackson, after leaving his job as a collector for a legitimate loan company, set up his own illegal lending business in 2006, encouraging many of the company’s customers to take loans from him instead.
His son-in-law, Hayhurst, initially began working for Jackson as a driver on his collection rounds, but as Jackson spent more time in Spain, Hayhurst took an active role in collecting payments and issuing loans.
The IMLT executed a warrant on a property owned by Jackson on Trower Street, Preston and Hayhurst’s address on Garsdale Road in November 2014, seizing loan documentation and cash.
The records seized showed that victims were charged £60 interest for every £100 borrowed and that loans had been issued to at least 142 individuals.
The Team also found evidence that Jackson had declared some of his income from money lending to HMRC, but was systematically hiding a significant percentage of his business by not submitting lists of his most lucrative victims to his accountant.
During the years he ran his business, Jackson collected almost £430,000 from his victims.
Upon sentencing David Jackson, Mr Recorder TJ Hannam said “These are very serious offences and it’s clear in this case that your behaviour was deliberately criminal. You were persuasive, insidious and damaging.
Your victims came from the most vulnerable areas of society, including the elderly and those addicted to gambling and very few were able to escape the spiral of debt in which you encouraged them.
You collected just short of £430,000 and became so busy that you employed Mark Hayhurst, enabling you to live in Spain.
There was a level of sophistication in your method, you kept detailed records of both your on and off the book loans and those records you suppressed from your tax returns varied between 28% and 46% of the value of your business.
The aggravating factors are that you were active over a long period of time, you knew it was criminal, you failed to heed the warning of your accountant, targeted the vulnerable and involved a family member.
Your offending is so serious that only a custodial sentence can be justified.”
County Councillor Azhar Ali, Lancashire County Council cabinet member for health and wellbeing, said: "Loan sharks profit by preying on some of our most vulnerable people and have no regard for the misery caused by their illegal lending and intimidating behaviour.
"Our Trading Standards officers work closely with the Illegal Money Lending Team and the police to pursue loan sharks, and it's encouraging to see that their hard work has paid off in this case by bringing these men before the courts."
Tony Quigley, Head of the Illegal Money Lending Team said: “We are continuing to crack down on illegal money lending and bringing those who break the law to justice. It’s important to remember that loan sharks are only motivated by greed so should never be used.
We would urge anyone with information about loan sharking or victims of loan sharks to contact the team on 0300 555 2222.”
Loan sharks operate illegally, without the correct permissions from the Financial Conduct Authority. These criminals usually appear friendly at first but quickly trap their borrowers into spiralling debt. As the debts can’t legally be enforced many lenders will resort to the most extreme and callous methods to enforce repayment.
Paperwork is rarely offered so victims are often in the dark as to how much they are actually paying. Exorbitant extra amounts and interest are added at random- the highest interest seen by an illegal lender was equivalent to 131,000% APR.
In some cases the loan sharks have been known to take items as security including passports, driving licences and bank or post office cards with the PIN in order to withdraw directly from borrowers’ accounts.
Nationally, Illegal Money Lending Teams have secured more than 336 prosecutions for illegal money lending and related activity, leading to nearly 217 years’ worth of custodial sentences. They have written off over £63 million worth of illegal debt and helped over 27,000 people.
To report a loan shark:
Call the 24/7 confidential hotline 0300 555 2222
Text a report to 078600 22116
E-mail reportaloanshark@stoploansharks.gov.uk
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