2nd June '08 - Debt Management Fraudsters Back in Court
Two fraudsters who were sentenced to three-and-a-half years in prison for depriving 54 people the opportunity to deal with genuine debt management companies have had their sentences reduced.
The two men, a 36-year-old and a 29-year-old, had previously been found guilty of using their company, Milano Debt Management, to defraud customers of around £63,000.
However, during a hearing at London’s Criminal Appeal Court, a judge ruled that the original sentences were “too high” and reduced them both to two years and eight months.
Part of the rationale behind this decision was a belief that the debt consolidation company had been created with “honest intentions”, only to “quickly become dishonest, in that no money was paid to the creditors”.
Despite this, the judge was at pains to point out the seriousness of the pair’s crime, saying, “This was a fraud of a large number of vulnerable people”.
During the original hearing into the case, the court heard how the two criminals used their customers’ money to support a “luxurious lifestyle” of fast cars and exotic holidays.
Following a tightening of purse strings right across the UK, it is predicted that the number of people taking out debt management plans will double to 320,000 in 2008, making it all the more important that consumers have access to regulated debt management providers.
To compare your IVA, debt management and consolidation loan options with a creditable IVA provider, use our online calculator today.
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