A 'LOAN shark' preying on Plymouth's Thai community illegally lent money to vulnerable women at huge interest rates, a court heard.

Paul Thomas took items such as jewellery and passports as collateral, but the loans were rarely paid back, prosecutor Jo Martin told Plymouth Crown Court.

She said Thomas had previously been licensed as a debt counsellor and credit broker, but had never held a licence to lend money.

Working with his now ex-wife, Thai-born Ratree Jungern, he lent cash to six women who came to him for help.

One took out a series of loans, including one to enable her to attend her father's funeral in Thailand.

She borrowed £2,000, but with compound interest built up over several years, this ended up as a £7,000 debt.

Miss Martin said Thomas, who was claiming benefits as he was unfit to work, spent £14,000 on air fares visiting Thailand 33 times.

On returning from one trip, he was arrested and found with a large quantity of cash and a notebook detailing loans and payments.

Police estimated he lent out £20,000 over a three-year period, netting £15,000 in interest.

Thomas admitted six charges of illegal money-lending, and also pleaded guilty to obtaining benefits, including housing and council tax, by making false statements.

He failed to notify the Department of Work and Pensions and Plymouth City Council of his change of circumstances between March 2004 and April 2008, claiming he had no other income or property when in fact he had an income from money-lending and other sources, and owned property in Thailand.

Although officially not working, his bank balance averaged £20,000 to £30,000.

Miss Martin added that Thomas, 50, of Penlee Place, Mutley, was convicted in 1998 under the Trades Descriptions Act. She asked that further charges relating to prostitution, which Thomas had denied and were not proceeded with, should be allowed to lie on file.

Ali Rafati, for Thomas, said he was in a fragile state of health and had suffered "more dark days than good days" while under investigation.

He said some communities from the far East liked to operate within their own circle in time of need, and gambling and borrowing money from each other was common in their culture.

The judge, Recorder Ian Pringle QC, told Thomas the women had come to him and he had not put them under pressure, but added: "You knew full well they were vulnerable people.

"Charging 10 per cent a month is nothing other than sharkish; you were lending money at exorbitant rates."

Recorder Pringle jailed Thomas for 15 months: six months for the illegal money-lending offences plus nine months for the benefit fraud, estimated to have cost the taxpayer £51,000.

A decision over whether to try to claw back money under the Proceeds of Crime Act will be made on December 17.

The prosecution was brought by a new anti-loan shark unit, the Bristol-based South West Illegal Money Lending Team.

Outside the court, regional enforcement manager Alan Evans said: "Thomas was a prolific loan shark operating in and around Plymouth, charging exorbitant interest rates right across the Thai community.

"The amounts lent ranged from £500 to £5,000.

"We will pursue these vile individuals and put them out of business. We will make sure that we strip them of all their assets so they are unable to profit or prosper from their criminal activities."