A Loan Shark was sentenced at Swansea Crown Court yesterday having pleaded guilty to illegal money lending.
Businessman, Dean Morgan aged 46 of Lan Coed, Winch Wen, Swansea was sentenced to 40 weeks imprisonment suspended for two years. In addition to which he was given a community service order to complete 100 hours of unpaid work within 12 months and ordered to pay £4,833 costs.
Officers from The Wales Illegal Money Lending Unit executed entry warrants at Lan Coed, Winch Wen, Swansea and arrested Mr Morgan on suspicion of illegal money lending.
During the search of the property documents and a mobile phone were discovered supporting the allegation of illegal money lending. Forensic examination of Morgan’s mobile phone revealed SMS text messages from debtors pleading to Morgan for time extensions to pay explaining that they were “skint” or promising to make double payments the following week.
Mr Morgan admitted he had provided loans to approximately 15 -30 people at an average of £200 – £500 per loan and didn’t provide any documentation for these loans. Morgan charged ‘extortionate’ inconsistent rates of interest on these loans.
Morgan’s debtors who provided witness statements in the case explained how they had “absolutely no idea what they had repaid and how much they still owed.”
Dean Morgan provided a loan of more than £1000 to a vulnerable adult with severe mental health difficulties who did not have the capacity to manage his finances. This individual was still repaying Morgan for this illegal loan at a rate of £40.00 per month, having done so for more than four years, at the time the officers executed warrants and arrested Morgan.
When explaining, in interview that he lends to vulnerable consumers Dean Morgan said: “This is why I haven’t pushed the business on because….I’m not being funny but the people who are at the end of this type of business were the lowest.”
When asked to explain this comment by the interviewing officer, Morgan was asked “Do you mean people who are the most financially excluded?”
“Yes” Morgan replied.
Steven Hay, Trading Standards Manager for the Wales Illegal Money Lending Unit said: “Dean Morgan deliberately set out to target individuals who he considered to be the lowest within his community knowing that they struggle financially. He knew that once he had them hooked they would continue to pay him.
“I urge anyone who is a victim of a loan shark or knows someone who may be victim to contact the Wales Illegal Money Lending Unit 24 hour hotline on 0300 123 3311. All calls will be dealt with in confidence by one of our specialist officers.”
Councillor John Hague from Swansea Council said: “People within Swansea and throughout Wales need to be aware of the despicable practises of loan sharks. I am delighted that the officers of the Wales Illegal Money Lending Unit supported by our Trading Standards and Social Services teams have brought this matter before the courts.”
Contact Stop Loan Sharks 0300 5552222 or Wales Illegal Money Lending Unit 03001233311.
