1. LIAISE Officer Trading Standards Illegal Money Lending Team
Nadeem Mahammed
LIAISE Officer
Trading Standards Illegal Money Lending Team 1

2. History
2004 – Pilot
2007 – Regional
2011 – National

3. The definition of a Loan Shark
Running an unauthorised business under the Financial Services and Markets Act 2000 3

4. The illegal money lending team
A dedicated, specialist resource
The England Trading Standards Illegal money lending team is funded by the Department of Business Innovation and Skills, and works in partnership with local Trading Standards Authorities across the country
The project was initially set up in as a pilot in Birmingham in 2004 , by 2007 it had proved to be so successful it was expanded to one large team covering five regions across the UK (these are the central region, the east of England, the south east, the north west and Yorkshire and Humberside). A Scotland team, A Wales team plus four small regional teams were also established at this time. At the end of 2010 consumer Minister Edward Davey confirmed further funding for the team and announced it will move to three national teams England, Scotland and Wales. On 1st April 2011 the national team launched. 4

5. Our offer to Partners Presentations to staff to raise awareness
Articles for newsletters
Staff training
“Bite Back Week”
One to one support for victims
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6. Loan sharks forced mum-of-three to run cannabis farm in her Salford home
A mum-of-three was spared jail for having a cannabis farm in her home – after a court heard she was pressurised into doing it by loan sharks who she owed money.Sharon Hanson, 39, turned to illegal lenders after getting into financial trouble, but found she couldn’t keep up with their crippling interest rates.Instead, Manchester Minshull Street Crown Court was told she was forced into cultivating drugs at her Salford home to keep the loan sharks at bay.
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8. Written off more than £63 million of illegal debt
National Success
Over 336 prosecutions
Written off more than £63 million of illegal debt
Helped more than 27,000 people
Seized and confiscated over £1.5 million cash
Secured over 217 years in prison sentences
POCA proceedings on-going for more than £27 million
Over 24,000 staff at frontline agencies across the country have been trained to spot a loan shark, in order to help support and signpost any clients who fall victim

9. Loan Shark trends No PERMISSION No paperwork - “you owe me this much”
No receipts for payment
Violence, intimidation and blackmail if repayments are missed
Loans to anyone (under 18’s included)
Take cash cards and other securities
Rarely advertise, find clients by word of mouth
Missed payments – high charges added to the loan 9

10. SHARKS

11. Kevin DONAGHEY
Plead Guilty - Suspended sentence for 9 months hours community service
£ seized from home address 
Barrowed to 112 customers
507 loans issued
£170, value of loans issued
£300, value of payments received

12. Winston Marquez
Operating an illegal money lending business since 2010.
Issued 90 separate loans to 30 regular clients.
Total amount of loans issued is in excess of £80,000.
In just 3 ½ years the he made a profit from these loans of over £30,000 which represents a 40% interest rate charge on average
Targeted struggling Filipino immigrants living in Stoke-on-Trent.
Marquez was handed six years imprisonment, suspended for 18 months. He was also ordered to carry out 200 hours unpaid work.

13. GC – Stoke on Trent 4.5 year prison sentence following an 8 day trial Charges: Running an unlicensed business, money laundering, 3 x blackmail, 2 x perverting the course of justice
Lending to 88 people over an 18 month period
Making £3,000 per week his business was estimated at £360,000
Charged £50 interest on £100 loans then increased this once payments started – told one client I’ll tell you when to stop paying
well known cage fighter he told victims rearrange their face”, “break their legs” and “chuck acid into their face so no-one would recognise them again”.
Caruso told a female victim she should work as an escort to pay of the debts, telling her he could drive her a long way from Stoke to do so.
Judge Trevor said Caruso “Made money lending to vulnerable people on low incomes, aided by the absence of any records and charging very high levels of interest. He used ugly threats of violence and whilst they were never executed, his reputation and involvement with boxing and cage fighting meant the threats were taken very seriously.

15. Question Time

16. For more information Nadeem Mahammed 07557 203277
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