John Dance, a prominent former racehorse owner, has been charged with nine criminal offences, which the Financial Conduct Authority (FCA) describes as “one of the most serious and largest frauds ever investigated” by the UK’s financial regulator.
Dance, 50, is accused of misappropriating over £64 million from client accounts at WealthTek LLP, a wealth management firm he led, between 2014 and 2023 to fund personal and business interests, including horseracing, property, and a nightclub. According to the FCA, these funds were allegedly laundered through Dance's personal and business accounts.
The charges claim Dance used client funds to purchase six racehorses, including Bravemansgame, a runner-up in the 2023 Cheltenham Gold Cup, with £723,000 transferred for the horse in 2019. Other expenditures reportedly include £806,500 in 2014 and £3.9 million in 2020 for residential and commercial property acquisitions.
Dance, who co-owned Bravemansgame and was the principal partner at WealthTek LLP (formerly Vertus Asset Management LLP), was well-known in racing circles as the owner of multiple Group One-winning mare Laurens.
The FCA alleges that Dance falsely represented WealthTek’s regulatory permissions to facilitate his alleged fraud. WealthTek LLP is currently in special administration due to insolvency, with the FCA confirming that approximately 84% of affected clients are expected to receive full compensation.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated:
"This is one of the most serious and largest frauds we have ever investigated. We allege that over many years, Mr Dance diverted millions of client funds for his own benefit, telling lies and forging documents to cover his tracks."
Dance faces three counts of fraud by abuse of position, three by false representation, and three by converting or transferring criminal property.
The FCA's investigation, which began in March 2023, has revealed the devastating impact on clients whose investments were mishandled. However, Chambers reassured affected clients that efforts to recover their assets are progressing:
"We’re pleased that clients are now seeing their assets returned."
Dance has been released on bail and is scheduled to appear at North Tyneside Magistrates’ Court on January 3, 2025.