A MAN jailed for running what was said to be a “profitable” illegal money-lending service faces having more than £100,000 in assets seized.

Wai Lun Cheung, 47, was jailed for three years and two months at Durham Crown Court earlier this year after admitting six charges relating to illicit money lending and money laundering.

It followed an investigation by the National Illegal Money Lending Team, backed by Durham Police and the county council.

Their inquiries led to a raid at his home address in Bowburn, near Durham, in August 2014.

Documentation and £24,000 in cash was seized from the premises, above a chop suey house in Durham Road West.

Despite initial denials, he later admitted making loans of £85,580 on which he charged interest and £59,370 without interest.

There were also a large number of cash deposits into his bank account, a third relating to his illegal activity.

Described as a “respected figure” in the Chinese community in the North-East, the Hong Kong-born UK passport holder was said to have dealt with a network of borrowers across the country.

The court heard it began from his connections among customers he met visiting casinos on Teesside and in Leeds, which saw him become involved in, and then administering a savings scheme within the Chinese community, described as The Pot.

James Dunstan, prosecuting, said it was the interest he charged on a weekly basis to Pot scheme members and subsequent personal loans made to them, which breached consumer credit regulations, as unlicensed money lending.

Anne Richardson, mitigating, said the defendant had a good name within the Chinese community and presented references to the court on his behalf, including one from Jimmy Chan, who chairs the North-East Chinese Association.

Miss Richardson said the POT scheme was set up as Chinese business people found it difficult acquiring loans and Cheung was trusted to run it, but when he branched into making loans it came as, “ a shock” to him that it was a strict liability offence if not regulated.

Months after his conviction Cheung was back at court for a crime proceedings hearing.

Simon Martin, prosecuting, told the court the Crown estimates Cheung benefited by £393,000 from his activities, but his realisable assets were put at £102,000.

Miss Richardson said she would discuss the Crown estimates with Cheung before agreement can be reached.

The case was adjourned for a further hearing on Friday October 14.