Judge Ahmad Kamal Arifin Ismail handed the sentence to TS Bir Singh, 61, after the defence failed to raise reasonable doubt at the end of its case.

The court ordered the father of four to serve his jail term starting today. It will be extended by another 12 months should he fail to pay the fine.

The judge also dismissed counsel T Puvaneswaran’s application for a stay of the ex-pilot’s sentence as it was without special grounds or circumstances.

Bir was charged with lending RM600,000 to AP Peter Paul, 62, in an unlicensed business transaction, between Oct 31, 2011 and April 24, 2012, at RHB Bank Berhad, Taman Tun Dr Ismail here.

The charge under Section 5 (2) of the Moneylenders Act 1951 carries a maximum fine of RM1 million or imprisonment of up to five years, or both, and in addition, caning, for subsequent offences.

Deputy public prosecutor Nurul Khairiyah Samsudin proposed the maximum punishment in the interest of the public.

“The penalty should be severe to serve as a lesson and a deterrent,” she said, noting that unlicensed moneylending activities were becoming rife.

In mitigation, Bir, who was also represented by T Thiyageswaran, said he was his family’s sole breadwinner and did not have a fixed income as he had been unemployed for one and a half years.

Bir’s wife and daughter were present in court.