John Dance, a prominent racehorse owner and sponsor, has been charged with nine criminal offenses for allegedly participating “in one of the most serious and largest frauds” that the UK financial regulator has ever looked into.
As half owner of the King George VI Chase winner and the second Braveman’s game at the Cheltenham Gold Cup, Dance had a string of racehorses headquartered in Middleham, Yorkshire, and enjoyed classic success with several Group 1 winners Laurens on the Flat and over jumps.
The 50-year-old also rose to prominence as a sponsor of the sport when his financial management company sponsored the Vertem Asset Management Trophy, a Group 1 race at Doncaster. The Financial Conduct Authority ordered Dance’s company to shut down operations in 2023 while it investigated how the company was run.
Dance was charged with nine offenses by the FCA on Wednesday, including several counts of money laundering and fraud. A British trainer who tests positive for “bizarre” drugs loses £21k in earnings and is banned for seven days in the US. John Dance was a principal partner at WealthTek LLP, a wealth management company that was formerly known as Vertus Asset Management LLP (Vertus), according to a statement.
Before WealthTek received direct authorization from the FCA in 2020, Vertus functioned as a trading brand before being designated as Sapia Partners LLP’s (Sapia) agent, allowing them to conduct specific regulated operations under Sapia’s guidance.Mr. Dance is charged with deceitfully misusing his trust position at WealthTek and Vertus for his own benefit.
According to the FCA, Mr. Dance moved more than £64 million from Vertus and WealthTek customer accounts to accounts under his control between 2014 and 2023.
He allegedly used this money to finance a lavish lifestyle as well as other business ventures like horse racing and a nightclub. “Using his personal and corporate bank accounts, the FCA claims that Mr. Dance laundered the proceeds of his illegal activities.
This includes transferring £723,000 to buy six racehorses, including Bravemansgame in 2019, as well as £806,500 in 2014 and £3.9 million in 2020 to buy residential and commercial real estate.
“Mr. Dance faces three additional charges for dishonestly misrepresenting WealthTek’s regulatory authorizations to carry out his purported fraud.”
According to the FCA, Dance has been granted bail and is scheduled to appear in North Tyneside Magistrates’ Court on January 3, 2025.
The FCA’s Restriction Order against Mr. Dance is still in effect. “This is one of the biggest and most serious frauds we have ever looked into,” stated Therese Chambers, joint executive director of enforcement and market oversight.
Given the criminal nature of the offenses being investigated, we have made every effort to keep everyone informed during this troubling time for those whose investments were entangled in WealthTek. “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.”
According to the FCA, 84 percent of people impacted are probably going to get full compensation.
