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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Wednesday, August 29, 2007 Man, 81, an alleged loan shark Edmonds man is accused of charging steep interest By Jim Haley, Herald Writer Lincoln J. Harvey was a regular at the Royal Casino in Everett. He had a lounge table where he routinely sat when he wasn't gambling. He told people his name was Tony Provenzano, a name long connected with organized crime. People in the casino often just called him "Tony." They treated him with respect, according to prosecutors. Prosecutors also say Harvey was a loan shark, sometimes charging interest of more than 1,000 percent on an annual basis. He allegedly pulled it off despite being in his early 80s. Harvey, 81, of Edmonds was charged Tuesday in Snohomish County Superior Court with one count of felony collection of unlawful debt. The charge alleges that the interest was set at a rate considerably above that permitted under lending laws, deputy prosecutor Mark Bridges said. This is only the second case of its kind that Washington State Gambling Commission personnel can recall in at least the last 10 years, commission spokeswoman Susan Arland said. According to documents, Harvey loaned money to casino employees, often at an interest rate of 15 percent every two weeks. Between June and September 2006, Harvey loaned money three times to a Royal Casino cashier. On one loan taken in June of that year, a $400 debt resulted in a $460 repayment. A second loan of $400 was made the next month, and the cashier again repaid $460, Bridges said. The third loan of $500 was taken out by the same man in late July. By September 2006, the cashier figured that he owed about $600 in principal and interest, Bridges said. The loan and interest were paid off by November 2006. "The annual interest rate for a loan structured in this way is 390 percent," Bridges said in documents. Charging papers recount four other instances when Harvey allegedly loaned money to casino employees. In one case, a loan recipient was told, "You better pay this back or I'll find you,' " papers said. Annual interest rates for those four loans were calculated at between 130 percent and 1,040 percent, Bridges said. Cash passed hands in the casino restroom and nearby restaurants, documents said. Gambling Commission agents questioned Harvey in April. He told agents that he started loaning money a couple of years ago, he usually charges 15 percent and he collects whenever the borrower can pay it back, documents said. "When asked about the term of the loan, Harvey said, 'I've got some for a year that haven't been paid. I don't have any agreements. I just tell them next payday. Sometimes there isn't any interest,'' documents said. He also told agents that he doesn't loan money to people who gamble, only those with personal financial difficulties, such as rent being due or car problems. The maximum penalty for conviction of collection of unlawful debt is up to a year in the county jail.

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