Chris Connor LIAISE Officer Trading Standards Illegal Money

Chris Connor LIAISE Officer Trading Standards Illegal Money Lending Team

What areas do we cover? • 3 Teams cover UK • Scotland • Wales • England

ENGLAND ILLEGAL MONEY LENDING TEAM • Set up in 2004 as a pilot project • Hosted by Birmingham City Council • Employs 70 members of staff • Two distinct functions investigators and LIAISE • Agile workers and scattered across England

Legal Lenders • Governed by the Financial Services and Markets Act • Permission required in order to make a loan • Various categories (including debt advice) • Currently no ceiling on the amount of interest a legal lender can charge (apart from credit unions) • • • Governed by Financial Conduct Authority collection guidelines Must show Annual percentage rate (APR) Lasts for 5 years and needs to be renewed 6 months prior to expiration Reports about licensed lenders go to local trading standards team Changes from 1/1/15 particularly affect pay day loan companies

The Walkers • Father and son convicted of Kidnapping • Father already pleaded guilty to illegal money lending, counterfeiting, a proceeds of crime offence and blackmail. • Charging 117, 000% 6 years 9 months

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 • • • 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. • • 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 noone 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.

SDL • • Charged with 16 counts of IML Loaned money to fellow foster parents Operated from her home in Manchester for more than 7 years Over £ 300, 000 in cash, cheques and bank transfers flooded into her account • One victim ended up paying back around £ 125, 000 over a period of seven years, after borrowing around £ 30, 000. • Given 3 years in prison • Judge Rudland said “You advanced loans with no assessment as to whether people could pay. The victims had no idea of their indebtedness to you. They saw you as a life long friend but you were ready to exploit them while benefiting yourself

Hospital Consultant • • £ 1 million lent, 90 people L/S for 6 years Hospital staff Operated from hospital in London Profits of £ 287, 000 Payments received more than £ 880, 700 £ 525, 000. 00 POCA

Graphic warning!

What is a loan shark? • A loan shark is someone who lends money (cash) in the course of trade or business without permission required by the Financial Services and Markets Act. • These licences are issued by the Financial Conduct Authority to individuals or companies whom they believe are “fit and proper”. • It is a criminal offence not to have the requisite permissions and carries a maximum sentence of two years in prison. • Who enforces this legislation?

Trading Standards and the regional Illegal Money Lending Project • • • Powers to ENTER. Powers to SEIZE. Powers to CHARGE. Powers to PROSECUTE. IMLT within the team has powers to ARREST. • Prosecution brought by Birmingham City council Legal team

LESSON PLANS • Primary & Secondary • Budgeting and financial literacy • Can be used in Phse lessons • Pfeg approved • Give an loan shark awareness message

TELFORD

Paul Nicholson & Tracey Rogers • • Found guilty of 20 offences Used a knuckleduster & baseball bat to collect debts Moved from a £ 170, 000 property to one worth over £ 1 million Had high performance cars and £ 26, 000 in cash Between June 2007 and march 2008 he collected over £ 648, 000 Sentencing – Paul given life (serve a minimum of 7 years) Tracey to serve 4 years. Sexually assaulted his victims and one customer committed suicide

We hope we can carry on our successes with your help. Questions? 0300 555 2222 Christopher. connor@birmingham. gov. uk Tel 07500809341