Former owner John Dance charged with fraud and transferring more than £64m of clients' funds

John Dance has been charged with money laundering and fraud by the Financial Conduct Authority (FCA) having allegedly transferred “over £64 million” in client funds to pursue a “lavish lifestyle” which included owning racehorses and a nightclub.

Dance, 50, has been charged with nine criminal offences in what the FCA described on Wednesday as “one of the most serious and largest frauds we have ever investigated”.

Dance has also been charged with dishonestly making false representation with respect to his firm WealthTek LLP's regulatory permissions to trade client assets.

WealthTek LLP, which also traded as the better known Vertem Asset Management and as Malloch Melville, was shut down in April last year by the City regulator after the discovery of “serious regulatory and operational issues” at the discretionary fund management firm.

The prominent owner, who raced the likes of six-time Group 1-winner Laurens and sponsored the final Group 1 of the year in Britain, the Futurity Trophy at Doncaster, was arrested and bailed in April last year while civil and criminal investigations were conducted into his businesses.

Following the FCA intervention, Dance’s horses were initially suspended from running by the BHA, including Bravemansgame, who was only permitted to run in the Grade 1 Punchestown Gold Cup when Dance’s 50 per cent share in the horse was sold to joint-owner Bryan Drew. Dance’s horses, and those running under the banner of Titanium Racing, were briefly permitted to run again until September last year, when the BHA imposed another suspension.

In a statement released on Wednesday, the FCA alleged Dance had used proceeds laundered through his personal and business bank accounts to buy six horses in 2019 for a total of £723,000 with Bravemansgame among those purchases.

John Dance pictured with his star performer Laurens at LeopardstownCredit: Caroline Norris

The FCA also alleged Dance, who had been transforming Manor House Farm in Middleham into a private training facility prior to WealthTek’s collapse, laundered £806,500 in 2014 and a further £3.9m in 2020 to purchase “residential and commercial property”. 

Therese Chambers, FCA joint executive director of enforcement and market oversight, 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.”

WealthTek LLP has been the subject of a special administration since last April with 84 per cent of affected clients set to receive full compensation through the Financial Services Compensation Scheme, which allows them to claim compensation of up to £85,000.

Dance’s assets have also been the subject of a restraint order under the Proceeds of Crime Act since last November, which enables them to be seized in the event of a criminal conviction. Last month, the administrator told clients that these assets would be used to compensate them for their losses.

Dance has been released on bail and will appear at North Tyneside Magistrates' Court on January 3.

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