A magistrate has convicted a woman for operating a fraudulent loan operation and ordered her to repay her alleged victims.
More than 800 people paid processing fees of $500 each to obtain loans ranging from $1,000 and $5,000 from Maresha Walkes, the woman behind Lamont Pays The Bills, before her operation was shut down by the Securities Commission in 2010.
Magistrate Derence Rolle-Davis convicted Walkes, 37, of carrying on a financial and corporate service without a license on Friday.
In his ruling, Rolle-Davis said Walkes admitted she provided loans, which borrowers had to repay within an 18-month timeframe, without having a license.
Walkes also admitted that she charged late fees, but claimed that she did not gain any financial benefit from the scheme.
Rolle-Davis said on the evidence there was no guarantee that applicants would be approved.
The magistrate said he did not accept the notion that Walkes "took on other persons' financial burdens through the goodness of her heart."
Rolle-Davis fined Walkes $35,000. If the fine is not paid within three months, she will serve a two-year prison sentence.
He also ordered the return of all the loan application fees and the seizure of all accounts operated by Walkes or her companies. The magistrate said those confiscated funds would be used to repay the applicants.
Rolle-Davis said persons who obtained loans should continue repayment to a special fund account.

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