ILLEGAL LENDER ‘PROFITED FROM OTHERS’ MISERY’
AN ILLEGAL moneylender “profiting from the misery and misfortune of others” was spending tens of thousands of pounds a year on flash holidays, a court has heard.
Clayton Rumbelow, pictured, 49, of Bro-Wen, Llwynhendy, Llanelli, was running a loan shark operation from his modest council house, a property which boasted “substantial security measures”.
Inside the house were thousands of pounds in cash, along with a baseball bat and air guns.
Swansea Crown Court heard Rumbelow, whose only legitimate source of income was benefits, was charging customers interest rates of 30%-40% on loans of £100, and had spent some £32,000 on holidays in just two years.
AN ILLEGAL moneylender “profiting from the misery and misfortune of others” was spending tens of thousands of pounds a year on flash holidays, a court has heard.
Clayton Rumbelow was running a loan shark operation from his modest council house, a property which boasted “substantial security measures”.
Inside the house were thousands of pounds in cash, along with a baseball bat and air guns.
Swansea Crown Court heard Rumbelow, whose only legitimate source of income was benefits, was charging customers interest rates of 30%-40% on loans of £100, and had spent some £32,000 on holidays in just two years.
Lee Reynolds, prosecuting, said a search warrant was executed at Rumbelow’s council house in Llanelli in August 2019 as part of an investigation into illegal moneylending.
He said the property had “very significant and substantial security measures” in place, including fencing and gate, a CCTV system and a reinforced front door.
A search of the house uncovered £5,000 in cash along with a baseball bat, two air guns and counterfeit clothing.
An examination of the defendant’s bank account showed some 600 cash deposits amounting to £162,000 – though the prosecutor said it was accepted the defendant had a gambling habit which could explain “some of the financial activity”.
The court heard the defendant’s gambling habit had resulted in him losing almost £29,000 over the previous five years.
Mr Reynolds said it appeared to investigators that the defendant was “living a lifestyle beyond his means” including having spent £32,000 on holidays in two years, and driving vehicles worth in excess of £42,000.
It is estimated the home security measures had cost around £4,500, while thousands of pounds had also been spent on various garden ornaments including two large gorillas. The court heard Rumbelow’s only legitimate source of income was from benefits.
Clayton Liston Rumbelow, 49, of Bro-Wen, Llwynhendy, Llanelli, had previously pleaded guilty to unlawfully engaging in activity for which a licence is required between 2014 and 2019 when he appeared in the dock for sentencing. He has previous offences on his record from the 1990s for assault and theft matters.
David Singh, for Rumbelow, said it was accepted his client had been involved in illegal moneylending but it was impossible to be precise about the total amounts involved.
He said he would submit it was an unusual case, and no formal complaints about the defendant had been made by members of the public.
The barrister invited the court to conclude there was a realistic prospect of rehabilitation and to suspend any term of imprisonment.
Judge Catherine Richards told Rumbelow he had been “profiting from the misery and misfortune of others” over a significant period of time, charging rates of interest of 30%-40% on loads of £100. She said she accepted the defendant had a gambling addiction and mental health issues, but she noted those mental heath issues were not linked to the offending.
With a 15% discount for his guilty plea, Rumbelow was sentenced to 10 months in prison, suspended for 12 months. He was also ordered to complete a rehabilitation course. The court heard he has signed a disclaimer for the £5,000 found in his bedroom, and that money will go to cover the cost of the prosecution by Cardiff Council, so no formal costs order was sought.
Speaking after the sentencing, Sarah Smith from Stop Loan Sharks Wales said: “Loan sharks target people when they are desperate and use threats and intimidation to fund a lifestyle their victims can only dream of.
“This was a welcome result in a difficult case as we were unable to convince any victims to come forward.
“We’re predicting that the current cost-of-living crisis will see victims of illegal moneylending increase, with loan sharks taking advantage of people who find themselves in precarious financial situations.
“If someone has borrowed money from a loan shark, or knows someone who has, please get in touch – the support we offer is safe and confidential, and we don’t want people to suffer in silence.”