LOAN SHARK JAILED FOR ILLEGAL LENDING, BLACKMAIL AND THEFT

20 Feb 2006 05:45 PM

A loan shark who admitted nine counts of illegal activity, including blackmail and intimidation, has been sent to prison following his arrest by a Government-funded team of loan shark hunters.

Kim Cornfield, who operated an unlicensed money trading operation in the Churchill area of Redditch, Worcestershire, targeted vulnerable people, particularly young women on benefits. He used threats of violence, sexual intimidation and aggression to try to get them to pay up, with many threats delivered by text message. The interest rates and payment schedules were so severe his customers struggled to get out of debt.

The investigation and prosecution, focussing on activities in Worcestershire, was undertaken by the Loan Shark Team of Birmingham City Council Trading Standards Department, part of a DTI initiative to stamp out loan sharks.

Cornfield had about 75 clients, many of whom had taken out more than one loan. He claimed he was owed £70,000 in repayments. Typically he demanded £5 a week in repayments for every £100 borrowed, seeking in total a sum one and a half times or double the amount originally lent.

Cornfield's intimidating tactics included threats to break a client's legs, to burn down their house or beat them up. He physically assaulted a visibly pregnant woman. Cornfield was sentenced to two years in prison. His wife Lynne Cornfield also worked on the loan business and was sentenced to a 12-month community rehabilitation order after admitting to unlicensed trading.

Commenting after today's sentencing, Consumer Minister Gerry Sutcliffe said:

"Cornfield used violence and aggression to intimidate his victims during a sustained campaign. He shamelessly targeted vulnerable young women. The Government is committed to shutting down villainous loan sharks, like Cornfield, and protecting the vulnerable in society."

Notes to Editors

1. About the Birmingham Loan Shark Team

* The Birmingham Loan Shark Team is one of two pilot projects set up by the Government in 2004 with £2 million investment.

* The project covers the West Midlands. A team of specially trained dedicated enforcement officers with the Trading Standards Department operate a confidential helpline number, 0121 693 1122. Information given to the helpline, together with independent undercover investigations, are used by the team to target operations.

* The team also works with local agencies to improve the financial advice and evidence available, ensuring that people have access to the right credit products for them.

* The other pilot project is based in Glasgow and covers Scotland.

2. Kim Cornfield was sentenced to 2 years on the afternoon of Monday 20th February 2006 at Worcester Crown Court, after admitting eight charges of blackmail and one count of illegal money lending.

3. Elizabeth Lynette Cornfield was sentenced to a 12 months community rehabilitation order on the same day, after admitting to unlicensed trading

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