Student exposes loanshark network

[youallhumsup]

Student exposes loanshark network
Lianhe Wanbao

Loansharks appear to have infiltrated our local schools.

A teen who was recently arrested for loansharking activity has come clean on the vast loanshark network in his school.

Chen, a 20-year-old polytechnic student was recently caught for allowing loansharks to use his bank account to make fund transfers.

For allowing loansharks to use his account for illegal activities, Chen receives about $200 "easy money" every month, which he spends on enjoying himself.

However, the flow of easy money came to an abrupt end when policemen appeared at Chen's home late one night and brought him back to the station to assist in investigations. He was detained for nine hours before his father could bail him out.

At the station were more than ten other people called in for the same reason.

Surprisingly, the youngest detainee was a mere primary five boy. There were also three or four other youths, and several aunties and uncles.

Chen told reporters that there is already a well established loanshark network in his school.

He explained that when his friend first asked him to open a bank account for the loansharks,he replied, "It's okay, I'm not short of money."

From then on, Chen's friend began asking him about it once every few days while emphasising that it is "very safe" from the police. Chen's friend also emphasised to him that he could close the bank account in a month if he wishes to pull out.

Two months later, Chen decided that he might as well stay on for the easy money. Chen also explained the pyramid structure and roles in the loanshark network in his school.

In a three-tier pyramid, Chen belonged to the lowest tier, where ten people, each with two bank accounts, are linked to a middle-tier person. The middle-tier people similarly report to a person in the highest tier.

All the people in the pyramid appear to be students from the same school. Chen said that the middle-tier person makes a lot of money.

"He often brings out a thick stack of $50 notes from his pocket. He's very busy working for the loansharks and cannot be bothered with ordinary holiday jobs or internships that pay $20 a day."

There are also bookies and loanshark runners in the loanshark network, all students in his school.

The bookies will collect soccer bets, then encourage those who have lost money to borrow money from the loansharks. The runners are in charge of depositing and withdrawing money for the loansharks.

The easy money seems to have lured many young students, undergrads, and many middle age adults to join the loanshark network.

Chen now hopes to tell others about his experience and warn people against joining such loanshark networks.

Source: Lianhe Wanbao, 7 November 2011.

 

[lianbeng]

lianbeng replies, "well done, chen! expose all of them. but...u r on their hit list now."