A 51-year-old man has today been sentenced at Mold Crown Court for operating an illegal money lending business and laundering the proceeds of crime.
Michael Barrie Kennedy, of Ellesmere Port, pleaded guilty to charges of illegal money lending and money laundering following a detailed investigation by Stop Loan Sharks Wales.
The court heard that Kennedy operated as an illegal lender over an eight-year period with approximately 30 victims identified. The majority of those affected were based in North Wales and had worked alongside Kennedy at the Chester branch of a well-known chain of restaurants, where he was employed as a waiter.
Kennedy exploited his colleagues’ financial difficulties, particularly during the cost-of-living crisis, offering loans under the guise of helping them through tough times.
Many of his victims were on unreliable incomes and, faced with mounting financial pressures, felt they had no choice but to turn to him when they had cash flow problems. He advertised his services informally through word of mouth and festive Facebook posts, often decorated with emojis to appear friendly and trustworthy.
However, the reality was far more sinister. Victims described being trapped in a cycle of spiralling debt, with interest ranging from 50% to 100%, and penalty fees of up to £150 imposed for missed payments. The interest charged often increased depending on how desperate the borrower’s situation appeared.
To further intimidate borrowers, Kennedy falsely claimed he was backed by a mysterious partner who would enforce repayments—adding a layer of fear and anxiety for those already struggling to cope.
The investigation revealed a calculated and exploitative operation that preyed on people in financial distress, leaving many in fear and facing unmanageable debts.
Michael Barrie Kennedy was sentenced to sentenced to 14 months in prison suspended for 2 years and ordered to undertake 250 hours of community service.
Cllr Ruba Sivagnanam, Chair of the Shared Regulatory Services Joint Committee, said: “Cases involving victims who are in work have sadly become the norm. Even more concerning is the growing trend of illegal lenders targeting their own colleagues within the workplace.
“Loan sharks bring misery and despair — but this case proves that we will find them and put an end to their exploitation.
“We strongly urge anyone struggling with cashflow not to turn to loan sharks. That’s why we’ve been working closely with MoneyWorks Wales to help employers look after the financial wellbeing of their workforce.
“Illegal lending is a scourge on our communities, and I encourage anyone with information about loan shark activity to contact Stop Loan Sharks Wales confidentially— either through their 24-hour hotline or via their website. I know the team well, and the support they provide to victims can truly be life-changing.”
Stop Loan Sharks Wales can be contacted by:
- Phone: 0300 123 3311
- Website: www.stoploansharkswales.co.uk
