Employer guilty of illegal loans

Martin Paul Smith, 47, owner of Baxi's Private Hire Ltd and Tile Cross Cars Ltd, pleaded guilty to the offence at Warwick Crown Court.

Smith, of Lichfield Road, Coleshill, lent money to his drivers, charging them interest of up to 40%, Birmingham City Council found.

He was found not guilty of acquiring criminal property.

Confiscation order

The council said its Illegal Money Lending Team found Smith also made his drivers do contract work to repay their debts.

After being convicted of not having a licence to carry out the activities, Smith was handed a confiscation order of £50,000 and ordered to pay prosecution costs of £25,000.

He was ordered to pay the money by 11 December or be jailed for 12 months.

Smith was also given a two-year conditional discharge for the offence.

'Loan sharking'

Councillor Neil Eustace, Chair of the Public Protection Committee, said: "This financial penalty is hitting him where it hurts and is a clear deterrent to people who may be involved in loan sharking."

Cllr Eustace said that since being set up three years ago, the Illegal Money Lending Team has had "great success putting loan sharks before the courts".

"This shows we are determined to protect self-employed small businesses such as private hire drivers and that we will not tolerate people who exploit them," he said.

The team's investigation found that Smith would either give his drivers, who are all self-employed, cash loans or buy a vehicle on their behalf and charge up to 40% interest.

Loan books dating from 2002 suggested loans were offered to more than 120 drivers, the council said.

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