In a shocking case that highlights the lengths some will go to bypass the law, a legal loan shark in Singapore has been sentenced for running an illegal moneylending operation, despite already having a legitimate business.

On August 13, Jason Pang Kum Huat, 44, was handed a punishing 16-month prison term, along with nine strokes of the cane and a hefty fine of $40,000. Pang admitted to breaching the Moneylenders Act and was also found guilty of possessing an offensive weapon in public.

While Pang operated a licensed loan company, the specifics of which remain undisclosed, his actions revealed a darker side. According to the Accounting and Corporate Regulatory Authority, he is currently a director of five companies, including Sentinel Financial Credit and Enforcement Debt Recovery.

In June 2024, he engaged with three individuals—Mr. Tan Boon Hua, Mr. Tan Ah Seng, and Mr. Tan Kok Ann—who were desperate for cash yet deemed too risky for legal loans due to their poor credit histories. Capitalizing on their vulnerability, Pang offered illegal loans at a staggering 20% interest rate: $2,000 each for the former two men and $1,000 for the latter.

When Mr. Tan Kok Ann failed to repay his debt, Pang's frustration escalated dramatically. In a fit of anger, he vandalized three innocent vehicles in a nearby open carpark by splashing them with paint thinner and leaving threatening notes—all to intimidate the debtors.

One of the car owners, bewildered and confused, reported the incident to the authorities, asserting that he had never taken a loan from Pang. This misstep ultimately led to his capture on July 26, 2024, after police traced him back to the crime.

The police search revealed an extendable baton in his vehicle, which Pang acknowledged was his, further complicating his legal troubles. Deputy Public Prosecutor Susanna Yim had slammed him for his blatant disregard for the law and sought a lengthier sentence of 17 months, along with corporal punishment and a steep fine.

Notably, this isn’t Pang’s first brush with the law. In 2009, he was previously convicted for illegal moneylending and sentenced to seven years of corrective training, which means he was eligible for enhanced penalties this time around.

This case starkly illustrates the dangers and consequences of illegal lending, showing that the law is closing in even on those who attempt to operate outside its bounds.