A LOAN shark who operated across Burnley, Rossendale and Todmorden has been ordered to pay up more than £100,000 - or spend six months in jail.

Stephen Fossey, 45, ran his illegal money-lending business from a stall on Bacup Market for more than four years until he was caught out by Lancashire trading standards and a national watchdog.

He was snared after county officials, investigating a fake tobacco scam operated by Fossey, tipped off the England Illegal Money Lending Team.

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Investigators found Fossey had been lending to 'vulnerable' customers across East Lancashire - nearly 200 high interest loan accounts were discovered when they conducted a raid at his Whitewell Bottom home in May 2012.

Fossey, of Foxhill Drive, admitted five offences of illegally engaging in a money-lending operation and was given a suspended prison sentence, with 200 hours community service, in May 2013.

But he was hauled back before Preston Crown Court under the Proceeds of Crime Act, which heard he had made more than £325,000 through his racket.

Prosecutor David Hercock said his realisable assets included three properties across East Lancashire, bank balances and £7,164, seized as a result of the operation.

Judge Jonathan Gibson ordered that he must pay back £103,000 within six months or face a six-month jail sentence.

Victims of the loan shark reported that they were charged between 25 and 30 per cent interest on top of their original sums.

One victim told investigators that he had been struggling to repay a loan for more than 10 years and estimated he had forked out thousands of pounds. He was still repaying £130 per week when Fossey was raided, and believed he still owed £2,500.

County councillor Janice Hanson, the county council's public protection services cabinet member, said: "Illegal money lenders cause misery for some of our most vulnerable people and this case sends a clear warning that they will be pursued and prosecuted, and their assets seized.

"We will continue to work closely with the Illegal Money Lending Team and the police to protect people from loan sharks."