A couple in their 70s who ran an illegal money lending business loaning over £2 million have been handed suspended sentences.
Romeo and Merlita Magtibay, both aged 73, from Surrey, must also pay back a total of more than £340,000 under a Proceeds of Crime confiscation order.
The pair appeared before Kingston upon Thames Crown Court on Friday, February 23, after admitting illegal money lending and money laundering.
They were each sentenced to 15 months in prison for illegal money lending and two years for money laundering, to run concurrently. The jail terms were suspended for 18 months. They were also handed a four-month curfew.
Romeo Magtibay was handed a confiscation order for more than £12,900 and Merlita Magtibay for more than £330,000.
Judge Judith Coello told them: “You were loaning money to people on a business or commercial manner, not a friendly, helping hand to people in need.”
The court heard that the Magtibays, of Albert Road, Mitcham, ran their illegal money lending operation between 2008 and 2019, even though they did not have the correct authorisation from the Financial Conduct Authority.
The case was prosecuted by the England Illegal Money Lending Team (IMLT) working in partnership with Merton Council Trading Standards and the Met Police.
Mr Ben Irwin, prosecuting, said the investigation began following an anonymous tip-off made to the IMLT via the Stop Loan Sharks online reporting facility.
An investigation began and in October 2019 a warrant was executed at the home of the defendants. Various items were seized including electronic devices and diaries containing the names of hundreds of people together with details of loans issued and repayments made.
The court heard that between October 2008 and March 2017, a total of 1,219 loans were made to 583 people ranging from £200 to £15,000. Bank account data also showed that after March 2017 a further 75 loans were issued. In the majority of cases, interest of 20 per cent was being charged.
One example of a loan given was for £1,000, but with no paperwork, and the borrower was made to pay £118 a month for 12 months, paying back a total of £1,416.
Messages were also found relating to guarantors and applying pressure if a borrower could not pay.
One message said ‘you’re her guarantor so you need to tell her to pay’. Another message from a guarantor reflected that pressure, saying: “I am the one mostly affected. Imagine, I work hard scrubbing toilet so I can pay off the loan of that no shame person. I’m old and struggling.”
Speaking after the hearing, head of the IMLT, Tony Quigley, said: “This is a great result for our team as a result of a painstaking investigation. We are determined to get these illegal lenders off our streets, and this shows we will not give up.
“We would like to thank the borrowers in this case who were brave enough to come forward to tell us what they had gone through. Anyone who thinks they might be in the same position should get in touch with our team for specialist support and advice.”
This year marks the 20th anniversary of the IMLT. Since its launch, the team has supported over 31,500 people and written off over £91.2 million worth of illegal debt, securing over 416 prosecutions for illegal money lending, leading to almost 600 years in jail.
Anyone who has been affected by illegal money lending should call the Stop Loan Sharks 24/7 Helpline on 0300 555 2222 or access support online at www.stoploansharks.co.uk. Live Chat is available on the website from 9am to 5pm, Monday to Friday.
