John Dance has been charged with nine criminal offences in “one of the most serious and largest frauds ever investigated” by the UK’s financial regulator.
The former leading owner is accused by the Financial Conduct Authority (FCA) of transferring more than £64m from client accounts of a wealth management firm to fund his “lavish lifestyle” and business interests, including horse racing and a nightclub, between 2014 and 2023.
He was principal partner at WealthTek LLP, formerly known as Vertus Asset Management LLP, a prominent sponsor within racing, and also owned multiple Group One winner Laurens and previously co-owned Bravemansgame, the runner-up in the 2023 Cheltenham Gold Cup.
Dance “laundered the proceeds of his criminality through his personal and business bank accounts”, the FCA alleged.
The FCA said this included the transfer of £723,000 to buy six racehorses, including Bravemansgame in 2019, and £806,500 in 2014 and £3.9m in 2020 “to purchase residential and commercial property”.
The 50-year-old also faces three additional charges of dishonestly misrepresenting WealthTek’s regulatory permissions to facilitate his alleged fraud, the FCA said.
WealthTek LLP is currently in special administration, a legal process used to manage insolvent financial firms.
Approximately 84 per cent of affected clients are expected to be fully compensated, according to the FCA.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “This is one of the most serious and largest frauds we have ever investigated.
“We allege that over a period of many years Mr Dance diverted millions of client funds for his own benefit, telling lies and forging documents to cover his tracks.
“We know this has been a worrying time for people who had their investments caught up in WealthTek and we have tried to keep everyone updated as best we can, given the criminal nature of the offences under investigation.
“We’re pleased that clients are now seeing their assets returned.”
Dance has been released on bail to appear at North Tyneside Magistrates’ Court on January 3, 2025.
He faces three counts of fraud by abuse of position, three counts of fraud by false representation and three counts of converting or transferring criminal property.
The FCA case opened 21 months ago in March 2023.
