John Dance has been charged with nine criminal offenses by the UK’s financial regulator in “one of the most serious and largest frauds ever investigated”.
The former leading owner has been accused by the Financial Conduct Authority (FCA) of transferring more than £64m from client accounts at a wealth management firm between 2014 and 2023 to fund his “disputed lifestyle” and business interests including horse racing and a nightclub. .
He was the principal partner of WealthTek LLP, formerly known as Virtus Asset Management LLP, a prominent sponsor in racing and owner of multiple Group One winner Lawrence and formerly of 2023 Cheltenham Gold Cup runner-up Bravemansgame.
Nach “laundered the proceeds of his crime through his personal and business bank accounts”, the FCA alleged
The FCA said this included transfers of £723,000 to buy six racecourses including Bravemansgame in 2019 and £806,500 in 2014 and £3.9m in 2020 “to buy residential and commercial properties”.
The FCA said the 50-year-old faces three additional charges of dishonestly misrepresenting Wealthtech’s regulatory permissions to facilitate his alleged fraud.
WealthTek LLP is currently in special administration, a legal process used to manage insolvent financial companies.
According to the FCA, around 84 per cent of affected clients are expected to be fully compensated.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “This is the most serious and largest fraud we have ever investigated.
“We allege that over the years Mr. Dance diverted millions in client funds for his own benefit, lied and forged documents to cover his tracks.
“We know this has been a worrying time for those whose investments in Wealthtech were caught and given the criminal nature of the crimes under investigation we have tried to keep everyone as updated as possible.
“We are pleased that clients are now seeing their assets back.”
Nach has been bailed to appear at North Tyneside Magistrates’ Court on January 3, 2025.
He faces three counts of fraud by abuse of office, three counts of fraud by false representation and three counts of conversion or transfer of criminal property.
The FCA case was opened 21 months ago in March 2023.
