Illegal Money Lending - A Crack-Down In The South West

The Government recently introduced a new initiative against illegal money lending creating a number of Illegal Money Lending Teams (IMLT). The South West IMLT - a 10 strong team from within Bristol City Council operate from two bases in Plymouth and Bristol. Their operational boundaries cover most of the Western Circuit.

The South West IMLT has not shied away from publicity. They boast a 24 hour helpline for victims, the use of undercover investigators, and work alongside police and immigration officers to bring to justice 'loan sharks'. They have been profiled by the BBC, Bristol Evening Post, Gloucestershire Echo and the Plymouth Herald amongst others (see their websites). There have been similar exercises throughout the country. Their raids, arrests, seizures and prosecutions also gain wide publicity.

There are a number of examples of the South West IMLT making significant arrests and seizures in the South West. They clearly view this proactive approach a useful tool regardless of whether any prosecution follows, sometimes simply relying on the Proceeds of Crime Act 2002 to seize cash and assets. South West lawyers who appear on the police station duty roster are likely to come into contact with the South West IMLT more and more.

However, they only brought their first prosecution in June 2009 at Bristol Crown Court. A second prosecution followed in November 2009 at Plymouth Crown Court. The number of such prosecutions will almost certainly increase as the Government has invested, and continues to invest, more than £6.4 million since the creation of these new teams. All lawyers, not just those who defend frauds/dishonesty offences, can expect to see more prosecutions of this type due to the associated and often more serious offending that relates to it.

It is clear from the investigations to date that 'loan sharks' are involved in other major crimes – drug offences, violence, running brothels amongst others. The new IMLTs' creator, the Department for Business Innovation and Skills, notes on its website that IMLTs have identified almost 600 illegal lenders, have started proceedings against 90 individuals and shut down loan books of more than £7 million. Using the Proceeds of Crime Act 2002 the teams have seized cash and assets worth £1.7 million. The longest prison sentence to date is 6 years 9 months for a loan shark who was also charged with kidnapping, wounding, blackmail and counterfeiting.

The two prosecutions brought by the South...