Waiter sentenced for running illegal money lending scheme

A 51-year-old man has been sentenced for running an illegal money lending business that preyed on his own colleagues and left victims trapped in spiralling debt.

Michael Barrie Kennedy, of Ellesmere Port, appeared at Mold Crown Court on Wednesday after admitting to charges of illegal money lending and money laundering following an investigation by Stop Loan Sharks Wales.

The court heard that Kennedy operated as an illegal lender for eight years, with around 30 victims identified, most of them based in north Wales.

Many were co-workers of Kennedy’s at the Chester branch of a well-known restaurant chain, where he was employed as a waiter.

Prosecutors said Kennedy took advantage of colleagues struggling with the cost-of-living crisis, presenting himself as a helpful friend offering small loans when they faced cashflow problems.

He advertised informally through word of mouth and festive posts on Facebook, often decorated with emojis to appear friendly and approachable.

Penalty fees

However, victims described how interest rates ranged from 50% to 100%, with penalty fees of up to £150 imposed for missed payments.

The court heard how Kennedy sometimes raised interest depending on how desperate a borrower appeared, leaving many caught in a cycle of fear and unmanageable debt.

In an effort to intimidate, Kennedy falsely claimed he was backed by a powerful partner who would enforce repayments, adding further pressure to those already in struggling.

Following a lengthy investigation, Kennedy was sentenced to 14 months in prison, suspended for two years, and ordered to complete 250 hours of community service.

Alarming trend

Speaking after the sentencing, Cllr Ruba Sivagnanam, Chair of the Shared Regulatory Services Joint Committee, said the case highlighted an alarming trend.

“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,” she said.

“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. Instead, we’ve been working with MoneyWorks Wales to help employers look after the financial wellbeing of their workforce.”

Detectives said Kennedy’s case showed the “calculated and exploitative” nature of illegal lending operations, which thrive on secrecy and vulnerability.

Stop Loan Sharks Wales, which investigated Kennedy, is urging anyone with concerns about loan shark activity to come forward. Since its creation in 2007, the unit has identified more than 300 illegal lenders and supported over 900 victims across Wales.

Victims and whistleblowers can contact the service via its 24-hour confidential hotline on 0300 123 3311 or online at www.stoploansharkswales.co.uk