Loanshark who exploited his position in the community to illegally lend more than £1million jailed

Sijo Sebastian, of Raphaels, Basildon, is a pillar of the UK’s Maliyali community, which originally hails from the south Indian state of Kerala.

Southend Crown Court heard the 39-year-old ran a chit fund, a legitimate credit fund typically used in Kerala.

Members of the fund pay in a sum of money each month, and each member takes a turn at having access to the cash. But Lee Bennet, prosecuting, said Sebastian used this “network” to make a profit of at least £325,000 from illegal loans over a five year period.

He said in total, £2.1m was paid into eight bank accounts controlled by Sebastian, but it was impossible to work out exactly how much came from illegal money lending because he also ran a taxi business and a film company.

He said: “Mr Sebastian was involved in illegal money lending. He grew this business over a long period of time. It was an entirely commercial operation which created a generous income for him in the form of repayments.”

The court heard that between 2012 and 2015, Sebastian declared a taxable income of just £29,000. He admitted two charges of illegal money lending.

Sebastian is a high-ranking member of the Basildon Maliyali community, the regional joint treasurer for the UK East Anglia Maliyali group and was involved in organising various festivals.

Cash was loaned to friends, family, businesses and churches, usually at an interest rate of between four to seven per cent.

However, unlike licensed lending in the UK, the interest had to be paid on a “rental” basis with the capital paid back at the end of a fixed period.

For example, in one case a woman borrowed £2,500 and had to pay £125 interest each month, for six months, and then pay back the original loan. However, she was unable to do so and had to keep paying £125 a month.

Investigators from the National Illegal Money Lending Team uncovered at least 300 “clients” - none of whom were deemed to be particularly vulnerable. Sebastian did not use threats or violence to enforce repayments.

However, Mr Bennet said: “It’s quite clear that he did use his position within the community to drive this business.”

Muthupandi Ganesan, mitigating, said Sebastian had “exceptional standing in the community” and had shown remorse at the “shame” brought on his family.”

Recorder Joseph Boothby told Sebasitain: “This is a very tragic and sad day for you, but you have brought it on your own head. Lending at street level is a highly profitable business with potential to cause considerable harm to those lent to.”

Sebastian was jailed for four months for each charge, to run concurrently.

Tony Quigley, Head of Service for the National Illegal Money Lending Team said: “This result sends a clear message that loan sharks will not be tolerated in our local communities and will be prosecuted.

“Loan sharks can cause untold misery to the most disadvantaged in our communities. We would urge anyone with information about loan sharking or victims of loan sharks to contact the team on 0300 555 2222. Your call will be handled by a trained IMLT officer and all information will be treated in the strictest confidence.”

David Finch, Leader of Essex County Council, said: “The importance of this outcome should not be overlooked. Illegal money lending can have a huge impact on a community and today this loan shark has received a proportionate punishment for his actions.”