It is not uncommon for business entities caught in violations to try to continue operating in the same manner, merely changing the signboard and the legal name. The Department of the Agency for Financial Monitoring for Almaty Region suspected a network of pawnshops of employing exactly such a scheme.

The story began when LLP “Albi-Lombard” was excluded from the register of organizations engaged in microfinance activities, thereby depriving the company of the right to conduct pawnshop operations. However, the investigation established that the business did not end there. After being renamed LLP “Albi-KM”, the organization effectively continued to issue loans secured by jewellery. This scheme covered not only Almaty Region but also Turkestan Region.

The operators calculated their approach carefully, locating the network’s outlets primarily near markets and trading centres — precisely where many people may urgently need money. Attractive advertising was created for clients, promising a high valuation of the collateral and no impact on credit history.

All these promises looked quite enticing, yet they concealed the main point: the loan terms were usurious. Loans were issued at two per cent per day, whereas the law limits the rate to 0.3 %. Thus, the actual rate exceeded the maximum permissible rate by more than six times!

To give the appearance of legality, the organisers formalised contracts with pledge tickets, using the seals of the former LLP “Albi-Lombard”. Tracking the cash flows proved difficult because settlements were conducted in cash as well as through the bank accounts of controlled individual entrepreneurs. According to the investigation, the illegal income exceeded 146 million tenge.

But the fraud was uncovered. A preventive measure in the form of a written undertaking not to leave the place of residence and to behave properly was chosen in respect of the suspect. By court order, her property was seized: 21 apartments, five land plots, seven cars, seven garages, two shops and a hotel.

The criminal case has been sent to court.

An illegal business that flourished in broad daylight and, as we can see, generated fabulous profits. This story serves as a reminder that the absence of a licence and a formal change of name do not exempt one from liability, while promises of “advantageous” terms often result in serious financial losses for borrowers.

Yet the clients of such dubious pawnshops, before handing over valuable items as collateral, could have checked whether the organisation was entered in the official register…

Yerden OMAR