A LOAN shark who bankrolled an operation to prey on vulnerable people in need of cash has been ordered to hand over the equity in his home.

James Palfrey, 39, who was jailed for ten months last December, was ruled to have benefitted from crime to the tune of £50,000.

But Palfrey, of Penhill Drive, Swindon, who is already out of prison on early release, will only have to repay £37,500, which represents the portion of his home's value that he owns.

Palfrey was appearing at Swindon Crown Court for a hearing under the Proceeds of Crime Act alongside partner in crime Ronald De La Cruz, 38, of Newhurst Park, Hilperton, Trowbridge.

Judge Peter Blair QC ruled each man benefitted from crime by £50,000 but while Palfrey has to repay three quarters of that De La Cruz must only hand over £1.

Under the Draconian law they can be ordered to hand back what they made from crime, but only if they have it.

Should churchgoer De La Cruz or Palfrey come into money in the future it will be open to the authorities to pursue them for the remainder.

And the judge ruled that £12,900 of the money reclaimed would be used to repay the victims of their crime who could still be found.

Simon Mortimer, prosecuting, said it was known that one of the borrowers had been deported as he had over stayed his visa, and two others could not be found.

But he said the other five who lost out would be recompensed from the money recovered from Palfrey.

The judge gave him six months to hand over the cash or face a 15 month jail term, and still owe the money after that.

He deemed the £1 owed by De La Cruz as paid, so did not impose a sentence in lieu of non payment avoiding unnecessary bureaucracy.

The pair of old school friends exploited the needy by making loans at high rates of interest then using bully boy tactics when their victims fell behind with repayments.

In one case a woman had her TV repossessed despite the fact she had repaid almost three time the original loan.

While De La Cruz found the victims for their illicit enterprise Palfrey provided the cash for the under the counter loan book could have been worth up to £80,000.

Mr Mortimer said they would lend the money and demand repayment with interest of 20 per cent a month added on.

"A loan of £1,000 would attract £200 a month additional. In that way a lot of money could be made," he said.

He told how one woman in 2011 bought a TV through De La Cruz for £800 and took an additional loan for £500 leaving her owing £1,300.

She initially paid £45 a week, going up to £50, then £80, but when she fell behind he came round and took the TV back even though she had handed over about £3,700.

Palfrey and De La Cruz both admitted unlawful money lending and possessing criminal property.

They insisted the total amount loaned out by them was nearer £50,000 and the 20 per cent interest rate was not monthly but the total to be repaid.

Richard Williams, for De La Cruz, said his client, who is the main breadwinner for his wife and their five children, was in about £70,000 debt.

He said much of it was to his co-defendant after when he took out bogus loans pretending to be customers.

Revd Fatimah Murray told the court De La Cruz was a regular worshipper and ran a soup kitchen for the homeless in Trowbridge.

James Burke, for Palfrey, said his client had come into the money after selling a house and used his friend to lend it out.