Lewis MacDonald’s Client Acquitted of Operating Illegal Money Lending Business

Lewis MacDonald represented the second of three defendants in a 15-day trial at Luton Crown Court. Lewis’ client was acquitted of all charges contrary to the Financial Services and Markets Act 2000 and the Proceeds of Crime Act 2002.

The prosecution, brought by the Illegal Money Lending Team, suggested the defendants had operated a business providing loans over 6 years amounting to over £1 million, relying on loan agreements, banking records, and thousands of messages between the first and second defendants discussing the provision of loans. All of the loans were provided within the Nigerian community. It was suggested that passports had been retained as security, and that the first defendant had gained access to borrowers’ bank accounts in order to monitor the use of loans, with the second defendant’s assistance.

The first defendant accepted that he had made loans but did not accept that he had done so as a business. Lewis’ client accepted that he had referred clients to the first defendant, had chased repayments on the loans, and witnessed signatures on loan agreements, but also asserted that he had himself borrowed money from the first defendant, was required to stand surety for anyone he introduced, and was therefore a victim of any illegal money lending. He denied having participated in any money lending as a business. He had provided a small number of his own loans over a limited period during the Covid-19 pandemic, due to the additional challenges faced by his clients in that period. Unlike the first defendant, he did not charge interest or obtain security for those loans.

The jury convicted the first defendant of both illegal money lending and money laundering, but acquitted Lewis’ client of the same. The third defendant was also acquitted.

Counsel was instructed by Natalie Berman and Elliot Kimber at Edward Fail Bradshaw & Waterson.