A police constable has been sentenced to 12 months' jail, suspended for two years, at Eastern Magistracy for loan-sharking and dealing with illegal proceeds.

Chan Wai-wing, 38, pleaded guilty to two charges of aiding and abetting a person to lend money at an excessive interest rate exceeding 60% per annum and one charge of dealing with property knowing or believing it to represent the proceeds of an indictable offence.

The court heard Chan's friend asked him for a loan in September 2005. He then gave her $100,000 - allegedly from a loan shark syndicate. They agreed the monthly interest would be $15,000, plus $1,000 a day for any late payment. The interest rate for the loan was about 481% per annum.

Chan got another loan of $100,000 for the friend at 570% per annum when she could not make repayment in February last year.

From October 29, 2005, to May 8 last year there had been 65 repayments totalling $512,400 for the two loans credited into Chan's bank accounts. Chan was caught red-handed on June 21 last year after receiving $10,000 in marked money from the woman.