Loan shark, Robert Sparey, 55, from Caerphilly has been jailed for three years and six months.
He was found to have made illegal loans of around £250,000.
His scheme involved more than 100 victims paying "extortionate" interest rates.
Cardiff Crown Court heard Sparey was claiming employment and support allowance, council tax benefit, motibility benefit and housing benefit. His Vauxhall Insignia was also funded by benefits.
After Sparey's arrest his assets were £43,000 - including two Rolex watches worth £3,000 and gold jewellery worth £1,750.
Sparey pleaded guilty to engaging in an unlicensed money lending activities, using or possessing criminal property, possessing goods baring registered a trademark with a view to offer for sale, and perverting the course of justice.