How One Man’s $230k Debt Became a $15 Million Loan Shark Nightmare
- Posted on November 27, 2011 at 6:29am by
Becket Adams
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Jason Shifrin is a London business man who, at the height of his career as a jeweler, was making almost $1,500,000 a year selling jewelry to wealthy soccer players. With his wife, luxurious home, top-of-the-line cars, and regular holiday cruises, Shifrin was living the high life.
Then he made a fatal mistake. He borrowed $230,000 from a friend with questionable connections.
Watch the Reuters report:
“He ran into difficulties himself and he had to leave the country, so the person he borrowed the money from, which I didn’t know anything about turned out to be two pretty heavy gangsters,” said Jason Shifrin in a recent Reuters report.
With his friend out of the country, and having to deal directly with the lenders, Shifrin saw the his loan’s interest rates skyrocket.
“I’d say it was £10 million pounds [$15,500,000] at the worst point. John number 1 would say here’s £50,000 [$77,000] and I would say I’ll return you £60,000 [$93,000], so I’d then go and borrow £70,000 [$108,000] from somebody else and return him £60,000 and then borrow £80,000 [$124,000] off of another John and return them £90,000 [$140,000]- and it kept rolling up – I just kept borrowing and borrowing just to pay the interest,” Shifrin said.
Obviously, he wasn’t able to keep up with their demands (as very few could). That’s when the intimidation started. Shifrin’s family started receiving death threats and ominous phone calls, forcing him to send his family away for awhile.
“It was total shock and disbelief and you know my whole world just completely came crashing down,” said Nicole Shifrin.
Although Shifrin’s personal debt experience is extreme, he isn’t the only one in England with severe debt issues.
“Official figures show that British households have amassed more than a trillion pounds of debt in mortgages, credit cards, overdrafts and other loans. And that figure is set to double by 2015,” reports Reuters.
The cost and demand of the loans eventually dismantled Shifrin’s jewelry operation. Although he has been able to work his way back up, even writing a book about his experiences, it’s been a tough go of it.
“I’ve learnt that material things are very secondary. Material things are lovely to have but only if you can afford them,” said Jason Shifrin.
“I think I took things for granted and I like to think I don’t any more,” his wife added.
Shifrin hopes that his book, “Money, Money, Money,” will encourage other entrepreneurs to avoid unsustainable debt and help him pay off the remaining million pounds he still owes.
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Comments (73)
Marcia
Posted on November 27, 2011 at 2:01pmHere’s a few good words for everyone: “The borrower is slave to the lender”. Simple, easy to understand and even easier to follow. STAY out of debt.
Report Post »TEXASGRANNY73
Posted on November 27, 2011 at 4:40pmMarcia Marcia Marcia (can’t help myself) This applies to everyone rich or poor. Best advice ever. Who wants to be a slave? Apparently a lot of people.
Report Post »johnsell
Posted on November 27, 2011 at 8:14pmGee I wonder if that applies to the USA’s debt to China………do ya think? Come on folks, its time to cut the spending and live within our means.
Report Post »lukerw
Posted on November 27, 2011 at 9:33pmSorry… but Bankruptcy invalidated Slavery for Money… where in the old system, one in Default of a Loan Repayment was sent to Debtors Prison, where one had to sell their Labor as an Indentured Servant to be released. But, obtaining Criminal Loans from Criminals is just STUPID!
Report Post »jason@shifrin
Posted on November 28, 2011 at 4:39pmwell said.
Report Post »Maidoff101
Posted on November 27, 2011 at 1:45pmAt least with the Mob You know what your getting into. The Federal Govt? Fugget about it!
Report Post »stripedhorse42
Posted on November 27, 2011 at 1:12pmSo, per the article we‘re being asked to consider buying this guy’s book to what end? Making him more money? I think it’s stupid to consider investing any funds toward this guy when I just learned in this short article what foolish decisions he made. If they were trying to advertise for him, they failed miserably
Report Post »Dan_o
Posted on November 27, 2011 at 1:43pmYeah, I’ll pass, too. However, maybe this is the book Mr. Obama should have purchased on small business Saturday. He could learn how borrowing from China (i.e., the mob) to pay off current debts just doesn’t end well. Then maybe he could write his own book called, “Money, Money, Money, Money,” and donate all the proceeds to the trillions in debt he continues to rack up….of course, no one will buy it. All his “followers” are broke and camping in public parks. Oh, but they’ll read it, once they can get a pirated ebook copy to download onto their $200-$900 iWhatevers.
Report Post »MBA
Posted on November 27, 2011 at 12:31pmWow, a person who can’t living within the 1% means (even if he is British). Well, England does have a pretty steep tax base, but still, if the taxes are 70% he still had $450k a year to finance a pretty fine life style. Sorry Bub, can’t feel your pain. Guess you will have to sacrifice your own knee caps for dealing with the devil instead of living withing your budget.
Report Post »Mikev5
Posted on November 27, 2011 at 4:30pmI agree with that.
This whole story stinks of come buy my book scam help bail me out he had a great life and gambled one time too much time to live in a condo again.
If I see it at the library I may give it a try but not buy it
Report Post »RodT82721
Posted on November 27, 2011 at 12:05pmThe same financial planing as the US Congress!
Report Post »Cat
Posted on November 27, 2011 at 3:11pmYou’re exactly right, the US Congress makes similar decisions and they won’t stop until we stop funding their criminal behavior, then they break us at the knees
Report Post »sjohn70037
Posted on November 27, 2011 at 11:15amYou did this to yourself so stop looking for pity. Isn’t anyone accountable for THEIR actions? WAAAA
Report Post »hi
Posted on November 27, 2011 at 11:01amI bet he was addicted to cocaine which led to his demise.
Report Post »Sheepdog911
Posted on November 27, 2011 at 10:22amWelcome to our economic future … China is the gangsters of this story. Death threats? Come threaten me or mine, please. Threats are only good against those who fear. Once you learn that, and are willing to act on that, you can even end gang activites much less those of some two-bit loan sharks.
Report Post »AB5r
Posted on November 27, 2011 at 9:29amThis the way that Muslims would traditionally work the Jizya tax with infidels. After taking over an area they would tell the infidels that they could continue to maintain their own faith if they paid the tax to the Muslims. But the tax would be very high, and even one missed payment would result it terrible consequences sometimes visited upon the entire community of infidels. The tax was so high that many would just give up and become a Muslim. This aspect of Islam explains why so many people are Muslims giving up the culture and religion of their ancestors. What a horrible thing that so many people have also lost their soul due to this evil aspect of Islam. Would you rather deal with a loan sharking gang ready to take everything you own or the mob of Islam ready to take your civilization and your soul?
Report Post »Eliasim
Posted on November 27, 2011 at 9:32amThe way I see it is Fiat money is based on the future production of people, and since people don’t own the future, then all the trillions and trillions in money is completely valueless, and so are the debts.
Eliasim
Posted on November 27, 2011 at 9:36amThe Lord God owns the future, and with all the screwed up finances in the world, I‘d say God ain’t letting you have the future.
Report Post »Censored_by_the_Illuminati
Posted on November 27, 2011 at 9:27amThis sound like the Obama economic plan. Borrow and spend then borrow some more.
Report Post »turkey13
Posted on November 27, 2011 at 9:54amI owe – I owe, it’s off to work I go! So that makes this guy just an average Joe. The party is over – so suck it up.
Report Post »for-what-its-worth
Posted on November 27, 2011 at 9:24amAre we suppose to feel sorry for Him?
~~~~~~~~~~~~~~~
That’s exactly what I was thinking.
Report Post »goldstox
Posted on November 27, 2011 at 9:07ami do beleive the final comments are the more relevent …. “avoid unsustainable debt” WORLD are you LISTENING?
Report Post »brian8793
Posted on November 27, 2011 at 8:50amDid they break his knee caps? If not, who cares?
Report Post »watashbuddyfriend
Posted on November 27, 2011 at 8:44amNow, this sounds like a ploy to make book sells? Bet’cha he collects a bundle!
Report Post »greensteam
Posted on November 27, 2011 at 8:50amthere is just no freakin way you borrowed a couple hundred thousand from a friend and didnt know he was a gangster. come on.
Report Post »Crusty Thong
Posted on November 27, 2011 at 10:37amI won’t be wasting my money on his book!
Report Post »JoeInMichigan
Posted on November 27, 2011 at 8:17amWhile there’s certainly a lesson here, the story is as old as money. I personally cannot relate, though, to a guy who makes $1.5 m a year and manages to get into this kind of trouble.
Report Post »When you make that kind of money, yet need to resort to a shylock for a loan, something was not kosher to begin with.
The real lesson here is, keep it honest, and it’ll keep you honest .
loriann12
Posted on November 27, 2011 at 8:25amI agree. Can’t relate. Why didn’t he just cut back? How do you go from $1.5 million to needing $50,000?
Report Post »Choctaw25
Posted on November 27, 2011 at 8:46amHere in America this is called Lobbying and Politics. Nobama is the muscle for this mob.
Report Post »tiki886
Posted on November 27, 2011 at 6:46pmThe reason you cannot relate is because you do not have a gambling addiction. His, is not a story of simply living beyond your means. More often than not, these gamblers end up with both the Feds and the gangsters chasing after you. He better make sure the mob don’t find him first.
Report Post »beaubird
Posted on November 27, 2011 at 8:07amWhy did he not turn the hogs in??????????????
Report Post »EODGhost
Posted on November 27, 2011 at 8:04amWow, the key sentence in that article.
“so the person he borrowed the money from, which I didn’t know anything about”
Not the sharpest tool in the tool shed.
Report Post »mikee1
Posted on November 27, 2011 at 7:53amWhat liberal came up with the term? That was the original term for the Market Crash in 1929. Now, it is a liberal shopping term?
Report Post »simply one voice
Posted on November 27, 2011 at 7:36amJason and Nicole – Gerald Celente is the finest financial advisor around, period. Go to his web site and get aboard. ok? http://www.trendsresearch.com/index.php – And, God bless and keep you.
Report Post »demint.disciple
Posted on November 27, 2011 at 8:06amThis is Becket Adams cousin trying to sell books for him..
Report Post »AZindependent
Posted on November 27, 2011 at 8:13amCelente is NOT an investment adviser, he is a trends forecaster. In fact, he just was ripped off for over $100K by John Corzine and MF Global. Celente’s only “advice” over the past few years was to buy gold, which many people have advised. Marc Faber, Jim Rogers, Peter Schiff, Kyle Bass, Jim Grant, John Williams, etc… these are the people you should be listening to for where to invest.
My advice is to secure the “basics” (water, food, shelter, heat source, etc…) before you invest a dime in anything else.
As for this idiot in the story, he is lucky to be alive.
Report Post »Mr Galt
Posted on November 27, 2011 at 10:19amJim Rogers? You mean this guy…
Q: What advice would you give people as far as investments?
A: Buy rice (evasive)
Geez Jim, you mean Minute, Uncle Bens, fried? Thanks for the handy tip – shyster.
Report Post »AZindependent
Posted on November 27, 2011 at 6:29pmThat’s the one. I would add “beans” to the portfolio, too.
Report Post »commoncents5
Posted on November 27, 2011 at 7:33amThis story sounds like the debt that both parties in Congress has built but only with a “T”!!!!
Report Post »All these people are soddish and must go home so that they can build their own debt and write their own checks from their own check book. Create a reality show to follow their “I” wants screech to a halt because they don’t know how to part with their own money….and won’t be able to insider trade any more! Throw the bums out!
banjarmon
Posted on November 27, 2011 at 8:42amThe guy’s story sounds like the US and China deals.
Report Post »Nemo13
Posted on November 27, 2011 at 7:22amWhat a bunch of crap. What’s important, is to make sure if you take a loan, that it’s not from a GANGSTER! He‘d be fine if he’d been paying attention. Oh, and NOW everything small in life is important to him. I give this whole story a huge *YAWN*
Report Post »JoeInMichigan
Posted on November 27, 2011 at 8:24amExactly.
Report Post »BehindBlueEyes
Posted on November 27, 2011 at 8:26amIf you wanna dance with the devil you gotta play his game.
Report Post »Ming The Merciless
Posted on November 27, 2011 at 10:24amHave you ever danced with the devil by the pale moonlight?
Report Post »Nervous Investor
Posted on November 27, 2011 at 7:18amThis is but one man … check what happened to Jamaica under the self proclaimed, Progressive, Democratic Socialist, People’s National Party Government that was in power for nearly 19 years ending in 2007 and now wants to return to power in the next election. The so called “World Class Finance Minister” for much of that time took Jamaica down a paper chase road of allegedly Keynesian theory and criminally high interest rates ….. which peaked in some cases on overdrafts at some 10% per MONTH. There is now much of a generation of Jamaican entrepreneurs (and others who simply borrowed to buy their houses and other basics) who have been converted to debt slaves by rapidly increasing interest rates compounding debt to unpayable levels. The said World Class Finance Minister then sold the debts to a US owned debt collection operation and apparently allowed them to keep compounding the debt with the same absurd interest rates. The disaster continues as I write this.
It is vital to the US that it stops the excessive spending that has taken it down an unsustainable path. Learn from the suffering of other countries …. Jamaica, Guyana, Zimbabwe and many more …..
Report Post »Bronco II
Posted on November 27, 2011 at 7:16amBeen there not as that high of debt but almost lost my home over debt and GOD brought me thru it and when Glenn talks about being humbled he did and I‘m thankful he did and that was over 12 years ago and he has been with me as the center of my life and I’ve never been happier and debt free outside of normal living expenses and he has blessed me and provided my needs for me notice I said my needs NOT MY WANTS.So when people ask me how are you I stole a line from Dave Ramsey and say BETTER THEN I DESERVE.I thank GOD everyday for his love and blessings and corrections.
Report Post »ninewishes
Posted on November 27, 2011 at 7:47amAwesome post, Bronco II. I can totally relate.
Report Post »Ferrarello
Posted on November 27, 2011 at 7:11amThere is a reason they don’t call them a “Loan Guppy”
Report Post »BehindBlueEyes
Posted on November 27, 2011 at 6:51amThere are many lessons to be learned from this story .
Report Post »quicker
Posted on November 27, 2011 at 7:15amThe biggest lesson of all ,learn to live within your means.
Report Post »not funny
Posted on November 27, 2011 at 7:33amYes, live within your means. “Stuff” is fun to have, but the debt one goes into to have all of the latest and greatest “stuff” is not worth it. And, by the way, please stop having babies when you do not have the means to support them. It is always the children who suffer when they have parents who make irresponsible decisions. Especially now, during the holidays, the stories we read are all about helping provide for the poor and homeless children (some newborns) and it is heartbreaking and maddening all at the same time. Think about the quality of life you can provide for a child BEFORE you have one.
simply one voice
Posted on November 27, 2011 at 7:45amNOT FUNNY – Fabulous advice.Thanks for your quality insights.
Report Post »Sugabee
Posted on November 27, 2011 at 9:39amNOT FUNNY- very awesome! To add to that….think about the quality of life you can provide for the child you produce before you UNZIP YOUR PANTS (and I’m talking both sexes here, not just the guys)!!
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