A BUSINESSMAN who claims he was threatened by a "loan shark" was running restaurants in a set up described as an illegal "sham", a court heard.

Abdul Hafeez said he'd borrowed up to £50,000 from lender David Bowen to help him with his various food ventures, but interest rates meant he'd paid back about £80,000.

The prosecution alleges threats were made by the Bowen family and two others, to people in Swansea's Asian community to retrieve borrowed monies.

The six people standing trial at Swansea Crown Court deny the offences of blackmail and unlawful debt collection.

In the dock are brothers Johnathan Bowen, aged 38, and Timothy Bowen, aged 37, both of Hendrefoilan Road, Killay, their sister Sally Morris, aged 35, of Killan Road, Dunvant, and their mother Gaynor Bowen, aged 66, of Gower Road, Killay.

Also charged is Richard Rowe, aged 37, of Priors Way, Dunvant, and Glyn Stock, aged 41, of Killan Road, Dunvant.

Susan Ferrier, prosecuting, said it was David Bowen the estranged husband of Gaynor, who was loaning people money. He is unfit to stand trial due to ill health.

Mr Hafeez told the jury that he'd borrowed the cash from Mr Bowen in between 1996 and 2004, initially because he had been declared bankrupt.

The pair became friends and Mr Bowen would visit Mr Hafeez's restaurants the Balti Palace in Morriston, and in later years the New Cinnamon in High Street, Swansea, to collect cash.

The prosecution allege that in 2008, years after Mr Hafeez repaid his debt, Morris repeatedly called him asking for help to contact people who were in debt to her father.

She is then alleged to have visited his family home on July 28, 2008, with Stock and Rowe, who was armed with an axe, claiming he still owed money.

During cross examination Mr Hafeez said that following his bankruptcy the Balti Palace restaurant was put in the name of his friend Ishaque Miah, and then later the New Cinnamon in the name of his son.

John Hipkin, defending Morris, said the way Mr Hafeez had operated his businesses was a "complete sham".

"You carried on your business as a bankrupt totally illegally," he said.

But Mr Hafeez said he had paid off his debts.

Mr Hafeez said on one occasion when his repayments fell behind Mr Bowen had visited his restaurant with his sons and threatened to smash it up. But later he changed his evidence and stated it was only David and Johnathan Bowen present.

The case continues next week.