Leslie Payne was born in Paddington, London, in 1924. After serving in World War II—where he falsely claimed to have reached the rank of major—he left the army in 1947.
Payne initially worked as a vacuum cleaner and radio salesman, eventually running a car dealership in Stratford. However, it was a legal dispute in 1959 over a hire-purchase agreement that changed the course of his life. This disagreement brought him into contact with the notorious London gangsters Ronnie and Reggie Kray.
Payne’s Role with the Krays
Impressed by Payne’s business skills, the Kray twins appointed him as their business manager. Payne helped the brothers expand their criminal empire beyond protection rackets and street-level crime. His expertise introduced the Krays to a new form of fraud known as “long firm” scams.
What Was the Long Firm Scam?
The “long firm” fraud was a highly lucrative scam. Here’s how it worked:
- A company, posing as a legitimate business, would build a good credit reputation by making regular payments on time.
- Once they gained trust, the company would purchase large amounts of goods on credit.
- Instead of paying for the goods, the company would sell them at a discount for cash, then disappear, leaving suppliers with unpaid bills.
This type of fraud was incredibly profitable, and the Krays made a significant amount of money from it.
A Falling Out and the Aftermath
Despite their early success, tension grew between Payne and the Kray brothers.
Payne wasn’t comfortable getting involved in their more violent operations, including smuggling stolen bonds for the American mafia. This reluctance led to his gradual distancing from the Krays.
In retaliation, the Krays attempted to have a gang member kill Payne.
Following this, Payne decided to cooperate with the police and provided key testimony during the Krays’ 1969 trial, which led to their conviction. However, Payne’s own legal troubles weren’t over. He later served jail time for publishing a book about his connections with the infamous crime family.
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Lessons Learned from Payne’s Story
The “long firm” frauds were extremely profitable for the Krays. Charlie Kray estimated that they made around £20,000 per scam, which is equivalent to £436,000 today. In 1962 alone, they netted about £100,000—roughly £2.1 million in today’s money.
While fraud investigations and credit checks have since improved, the core lesson remains relevant: businesses must conduct thorough due diligence before extending credit to new clients.
Even now, failing to do so can leave companies vulnerable to fraud.
Leslie Payne passed away in 1990 at the age of 66, leaving behind a story filled with both criminal intrigue and lessons for those in business.
Takeaway: A Cautionary Tale for Modern Businesses
Payne’s journey from businessman to criminal collaborator underscores the importance of vigilance in business dealings. Despite the progress in fraud prevention, businesses should remain cautious, conducting detailed checks before offering credit, to avoid falling victim to scams.
