JOHOR BARU • Illegal moneylenders are operating from luxury condominiums and high-end houses across the southern Malaysian state of Johor, offering loans to those desperate for fast cash.

Many of their targets are those working in Singapore, and the moneylenders charge interest rates of between 24 per cent and 60 per cent annually.

People who are blacklisted by financial institutions also turn to these syndicates. Borrowers who fail to pay up are usually threatened or face harassment.

Police have arrested 21 people following a series of raids in the city over the past few days.

These raids have been dubbed the biggest arrest of loan sharks this year after three major syndicates were busted in the state.

The arrests were made during a major operation led by officers from Bukit Aman's Commercial Crimes Investigations Department in Kuala Lumpur, together with their Johor counterparts.

Sources said the police units were divided into several teams and they carried out the raids simultaneously in several places in Iskandar Puteri, Seri Alam and Setia Indah. "The suspects were nabbed based on more than a dozen police reports lodged by the victims in the state," the sources said.

Police seized an array of items from the suspects, including dozens of cellphones, computers, vehicles, ATM cards, bank books, fliers and cash. Police also seized several ledgers containing information on the borrowers and loan defaulters, the sources added.

This is the second major crackdown on loan sharks in Johor. In May, at least nine people were arrested in a series of raids in the city.

It is learnt that Bukit Aman is coming down hard on loan sharks across Malaysia and has launched a major nationwide blitz.

Several major loan syndicates have been busted this year.

When contacted, Bukit Aman's Commercial Crimes deputy director (intelligence and operations), Senior Assistant Commissioner Willey Richard, confirmed the arrest of the 21 suspects in Johor, adding that they have been remanded for investigations.

"We will come down hard on loan sharks in the country," SAC Willey said, urging the public to go to licensed financial institutions instead of borrowing from these illegal sources.

He added that those with information on illegal money-lending activities could contact the nearest police station.

THE STAR/ASIA NEWS NETWORK