Radcliffe loan shark told victim 'I'll take you to the moors and you'll never be seen again'

Two loan sharks from Radcliffe who exploited "vulnerable" people with mental health conditions, leaving one to survive on just £40 a month, have been jailed.

Stephen Lee, 60, and Gary Karucz, 47, befriended two different men, both of whom suffered from mental health conditions and lived in supported accommodation. They also claimed benefits as they were not able to work.

Working together, Lee and Karucz offered to lend the men money, but charged an interest rate of more than 100%.

At Minshull Street Crown Court in Manchester, Zoe Dawson, prosecuting, said the first victim moved into his supported living flat in November 2018 and, after a few weeks, met Karucz, who offered to lend him £20 but said he must pay back £40.

Ms Dawson said: "It was a rate that was 100% above the commercial rate."

The victim immediately paid Karucz back as soon as he received his benefits, but the next time Karucz lent him money, he also asked him to hand over his bank card.

The man did so as he felt intimidated by Karucz and feared he would hurt him if he didn’t do as he said, the court heard.

Ms Dawson said: "He remained intimidated by him over a six month period and so continued to borrow money.

"He was threatened on one occasion to be taken to the moors and never be seen again.

"Stephen Lee and Gary Karucz were operating together in an illegal money lending business.

"These were unregulated loans on vulnerable individuals who were charged an exorbitant amount in interest.

"They were acting as loan sharks."

The court heard Lee was acting as the driver and helped Karucz collecting the money, and over a six month period they took between £4,000 and £5,000."

The court was told towards the end of the months, the first victim "had little money left to him" with both Lee and Karucz were using the man’s bank account "as their own" putting money into it and taking it out without his consent.

The court heard of a second vulnerable man, this time befriended by Lee in September 2019.

He was lent £20 by Lee, who asked him to pay back £30, and also asked him for his bank card and PIN.

Ms Dawson said he was intimidated by Lee, who threatened kidnap and assault.

She added that he only ever received £40 out of his benefits per month, with the two defendants ‘emptying’ his bank account of £1,017 over an eight-month period.

The man later cancelled his bank card, but was challenged by Lee about it.

He told Lee he was getting a new card, and Lee drove him to pick it up from his bank, before taking it and instructing him to withdraw £400 in cash.

In total, £7,816 was taken from the second victim.

Both men were arrested at their address on Exeter Road, Radcliffe. Karucz replied to his caution, saying: "Are you here because I have been loaning money to the homeless?"

In both men’s bedrooms, they each had "debtors lists" containing the names, details and money owed from their "customers".

Lee and Karucz both pleaded guilty to offences of theft, fraud, and illegal money lending. Karucz also admitted separate offences of supplying cannabis.

Manchester Crown Court heard Karucz has previous convictions for dishonesty and Lee, who lost one arm in an horrific accident, had previous convictions for sex offences.

Mitigating for Karucz, Stuart Duke said: "These are mean offences. He expresses genuine remorse to these vulnerable men.

"These were hallmarks of bullying. He does have a realistic prospect of rehabilitation."

Mitigating for Lee, Andrew Evans said his client met the second victim "by chance" and he was not sought for and targeted.

Mr Evans said: "This sort of offending is out of character."

Karucz was jailed for two years and seven months months, while Lee was jailed for two years and four months.

Sentencing, Judge John Potter said: "These offences display a willingness by both of you to steal from and defraud from the vulnerable people trapped in poverty.

"This was, for me, odious and cruel offending.

"Both of you, over a significant period of time, exploited others for your own selfishneeds, out of thousands of pounds.

"For the people, in my judgement, who will hear of this type of dishonest offending, will have nothing other than disgust and revulsion.

"You both engaged in this activity by stealing from individuals their bank cards and using them to fleece their accounts of what little money they had in them.

"That is abject greed - exploiting poverty."

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