Loanshark operator jailed and fined $300K

[Hanzo Kattori]

Feb 10, 2011

Loanshark operator jailed and fined $300K

By Elena Chong

A FREELANCE salesman who abetted by scheming with three others to carry on an unlicensed moneylending business was jailed for 45 months and fined $300,000 on Thursday.

Ku Teck Eng, 41, is the third person in the group to be dealt with. Two of his accomplices, Garreth Ho Sheng Yu, 38, and Melvin Tan Cheng Eng, 35, both unemployed, were convicted last month and are now behind bars.

Ku had admitted to 10 of 30 counts of abetment by conspiring with Ho, Tan and then part-time polytechnic lecturer Lee Kim Hock, 51, to commit the offences between July and August last year.

A district court heard that Ku was a salesman selling air purifying charcoals in 2009 when he came to know Lee who bought goods from him.

About a month later, Ku told Lee that he was facing financial difficulties and had owed loansharks money.

He suggested to Lee to start an unlicensed moneylending business as it seemed profitable. Lee agreed and came up with a $20,000 capital for the business to be operated by Ku.

Subsequently, Ku recruited Tan, then his employee, in the business and offered him 30 per cent of the profit made. Tan's role was to canvass for borrowers and issue loans to them with interest charged at 20 per cent to be repaid weekly.

When Ku found out that Tan had been dishonest, he told him to leave. He then recruited Tan's childhood friend, Ho, who had been introduced to him.

Ho then switched from being a runner for a loanshark to working for Ku. Ku could have been fined between $30,000 and $300,000 and jailed for up to four years on each charge.

 

[Sun Quan]

May 24, 2011

Ex-poly lecturer jailed for loansharking offences

By Elena Chong

Lee Kim Hock, 52, a part-time polytechnic lecturer who was involved in loansharking activities, was jailed for 39 months and fined a total of $300,000. -- ST PHOTO: WONG KWAI CHOW

A FORMER polytechnic academic associate who was involved in loansharking activities was jailed for 39 months and fined a total of $300,000 on Tuesday.

Lee Kim Hock, 52, then with Republic Polytechnic, pleaded guilty to 10 charges of scheming with two to three men, to run an unlicensed moneylending business between September 2009 and September 2010.

Loans of $300 to $2,000 were issued to debtors who were charged at 20 per cent interest and repayable on a weekly basis. A district court heard that sometime in August or September 2009, Lee became acquainted with Ku Teck Eng, 41, who said he was in financial difficulties and owed loansharks money.

Ku commented that an unlicensed moneylending business seemed profitable. Two weeks later, he broached the subject of starting the business and Lee agreed by providing $20,000 capital.

Under the scheme, Ku would find debtors and contact Lee whenever he needed money to issue a loan to debtors. Ku recruited Melvin Tan Cheng Huat, 35, as an assistant, but Tan was kicked out for being dishonest. Another man, Garreth Ho Sheng Yu, 38, took over last August.

The syndicate had a total of 30 to 40 debtors and the amount of loan in circulation was about $41,000, a district court heard. Lee, an ex-army regular, had 18 other charges considered during his sentencing. He will serve another 60 weeks in jail as he could not pay the fines. All the co-accused have been dealt with.