A loan shark accused of fleecing desperate busines

A loan shark accused of fleecing desperate businessmen out of millions of pounds today denied ‘hiding’ his deceit in the contract small print.

George Steen, 54, and his associates allegedly swindled global venture seekers from Australia, New Zealand, Canada and America.

They held drawn-out discussions over the loans, before pulling out at the last hurdle, Southwark Crown Court has heard.

He and ‘agents’ Dennis Alexander, 47, and David Andrews, 38, allegedly enticed more than 100 victims
into signing up for cash contracts.

But when applicants were unable to pay a hefty collateral bond of up to 40 per cent of the loan the deal was terminated, jurors have heard.

Steen’s counsel Peter Birkett, asked: ‘As far as the security conditions, what was the state of your beliefs?

‘Was it that they knew about the collateral bond requirements at an early stage?’

Steen replied: ‘I always insisted with brokers that they discuss the security requirements and all the other requirements with their clients.

‘Without the compliance of the security conditions, the loan could not complete, so it is important that these are in place.

‘

Mr Birkett then asked: ‘Was it important that the client should know about these details at an early stage?’

Steen told the court: ‘It is important and I think the offer letter is clear in what it says.

‘It says that the collateral bond is required and it advises the client to seek the appropriate advice.

‘

Mr Birkett asked: ‘Did you ever seek to hide that requirement from applicants?’

Steen answered: ‘No.

Not at all.

‘

The court has heard that one victim, Australian restaurateur Ian Hopper, lost pnds stlg 45,000 to the gang.

He had dreamt of opening a chain of eateries with movie mogul Steven Spielberg in his home country and the Far East.

After spotting the defendants’ advert in a newspaper he contacted them for a pnds stlg four million loan he needed to build submarine style restaurants.

Mr Hopper paid pnds stlg 45,000 in administration fees and was then told no bank guarantee was needed for the loan, jurors heard.

But when he realised he would have to pay the collateral bond himself, he allegedly begged the trio to change their conditions.

Steen said he had already outlined their guidelines and had no intention of making an exception.

He told the court: ‘I rejected the requirements to amend the conditions.

‘

When meeting clients in the Grand Hotel in Brighton and the Dorchester in London’s West End, the gang would allegedly name-drop well known contacts.

This allegedly gave their business a ‘spurious aura of respectability’.

Alexander, of (14) Elvin Court, Rottingdean, East Sussex, Steen, of Hanover House, (13) Victoria Road, Darlington, Co Durham and Andrews, of Natewood House, Polegate Road, Hailsham, East Sussex all deny one charge of conspiring to defraud between January 1 1996 and June 6, 1999.

Another man, Colin Hardy from Redcar, was also allegedly involved in the fraud, but he died last year.

The trial continues.

ends