Home-based Hougang loanshark jailed and caned

A loanshark operating from his home in Hougang grew his initial capital of $10,000 to more than $50,000 within eight months until a tip-off to the police got him arrested.

Derrick Neo Pek Lie was sentenced to four years in jail, a $500,000 fine, and 21 strokes of the cane on Tuesday.

Neo started off as an 'agent' for an illegal Internet soccer betting syndicate. He was so good at it that the syndicate leader roped him into the unlicensed moneylending business in May 2010. He did not have to put up any capital as he was taking over an existing illegal moneylending stall.

A syndicate usually has several stalls, each managed by a trusted henchman who is to issue fresh loans, collect repayments and maintain records of the business. Neo would work from 6pm to 9pm daily and received 30 per cent of profits. Six months later his share of the profits was increased to 50 per cent as reward for his excellent work.

Unknown to the syndicate, he had set up three stalls on his own with an initial capital of $10,000 and between November 2010 and July 2011, he had accumulated 34 debtors and rolled out loans amounting to more than $50,000. He kept all his records on Excel worksheets.

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