Businessman, employee charged in ‘loan scam’
Chairman of Micro Business Developers and Consultancy Company, Clayton Allen, and his employee, Nobert Bailey, were charged on Friday for allegedly swindling $1.1M from a woman in a loan scam.
Allen, 62, of South Better Hope, East Coast Demerara, and Bailey, 59, of Diamond Housing Scheme, East Bank Demerara appeared before City Magistrate Leron Daly and denied the fraud charge.
Particulars of the charge alleged that between November 2, 2021, and July 18, 2022, at Georgetown, with intent to defraud, the pair obtained the sum of $1.1M from Lindell Toney by falsely pretending that they were in a position to grant her a $45M loan.
Police Prosecutor Christopher Morris objected to the defendants being released on bail since there is a major investigation ongoing against the pair for similar crimes.
Morris further told the court that in 2018 Allen was convicted of fraud and was sentenced to 36 months’ imprisonment. He was also jailed in 2017 for defrauding another woman.
However, Bailey, on the other hand, Morris said, was charged with forgery and simple larceny in 2015.
Allen’s attorney Dexter Todd asked the court to release Allen on bail since he has a health complication. Todd further added that he has since appealed Allen’s previous conviction and sentencing at the Guyana Court of Appeal.
He further contended his client did not defraud the woman since there is a 6% processing fee for all loan applications which amounted to $1.1M.
Magistrate Daly remanded Allen to prison and granted Bailey $300,000 bail.
Bailey was ordered to lodge his passport at the court and report to the Criminal Investigation Department (CID) Headquarters every Monday.
The matter is adjourned until October 14.