GEORGE TOWN, July 14 — The police busted two groups of suspected loan sharks, including a Datuk Seri, as well as a lone operator, with the arrest of 20 individuals, on July 7.
Penang Police Chief Datuk Datuk Mohd Shuhaily Mohd Zain said the first group is believed to have ties to Gang 24.
“A total of 15 individuals, led by the 59-year-old Datuk Seri, were arrested under the first group,” he said.
He said the group are accused of illegally loaning cash to various individuals who were then charged a high interest of between 30 and 50 per cent a month.
Gang 24 is linked to other illegal activities such as gambling, prostitution, extortion and drugs.
The second group arrested, known as Kumpulan Wong, comprise four individuals led by a 25-year-old man.
Finally, Mohd Shuhaily said a loan shark, who operated alone, was also arrested under the joint operation by the commercial crime unit and Bukit Aman.
“The individual who was operating alone is an opportunist who was lending money with an interest rate of between 3 and 5 per cent,” he said.
He said the suspects were arrested at various locations in Penang on July 7 between 6am and 5pm.
“The 20 suspects arrested are aged between 21 and 59 years old,” he said.
Mohd Shuhaily said a total of 11 luxury cars, 36 handphones, 64 ATM cards, 22 sets of documents, RM24,520 in cash, nine watches and seven pieces of jewellery were seized in the operation.
The modus operandi of the suspected loan sharks was to loan money to people such as shop owners, factory owners and workers and charge them a high interest rate.
It is believed that the suspects also resorted to threatening those who failed to repay their loans.
They also had firearms and weapons in their possession that were used to extort their victims.
He said the suspects are believed to have a turnover rate of RM500,000 per month through their illegal money-lending activities.
The case will be investigated under Section 5(2) of the Moneylenders Act 1951 for anyone who carries a business as a moneylender without a valid licence which carries a fine of no less than RM20,000 but not more than RM100,000, or a jail term of not more than five years, or both.
