One of the country’s best-known racing tycoons has been charged with nine criminal offences in ‘one of the largest frauds ever investigated’.
Wealth manager John Dance is accused of using £64 million of clients’ funds to support his luxurious lifestyle, which involved purchases such as racehorses, as reported by the financial regulatory body.
One of these horses, Bravemansgame, won the King George VI Chase at Kempton Park two years ago – landing the 50-year-old one of the top prizes in British racing.
Another horse he bought, Laurens, won six big races and bagged just under £1.8m in prize money.
Dance, who is a part-time DJ, is also accused of spending the money on buying a nightclub, as well as expensive properties.
The Financial Conduct Authority (FCA) said it was ‘one of the most serious and largest frauds we have ever investigated’ after a probe that looked at incidents between 2014 and 2023.
In a rags-to-riches tale, Dance began his career stuffing envelopes in the post room of a stockbroking firm before going on to work at the London office of glitzy US investment bank Merrill Lynch.
He went on to start his own company. Dance was the principal partner at wealth management fund Vertus Asset Management, which later went by the name of WealthTek.
John Dance (far left) with his prize winning horse Laurens alongside rider P.J. McDonald and trainer Karl Burke
Dance allegedly took £64m of clients’ money to ‘fund a lavish lifestyle’ including buying racehorses, according to the financial watchdog
Dance, who is a part-time DJ, is also accused of spending the money on buying a nightclub, as well as expensive properties (pictured with his horse Laurens)
These are advisory services that help affluent clients preserve their wealth.
His company sponsored major racing fixtures including the Futurity Trophy at Doncaster.
But the FCA launched an investigation in March 2023.
WealthTek was ordered to cease operations and appoint administrators a month later in April 2023.
Dance ‘laundered the proceeds of his criminality through his personal and business bank accounts’ over almost a decade, the FCA alleges.
This included the alleged transfer of £723,000 to purchase six racehorses, including Bravemansgame in 2019.
It also included allegedly taking £806,500 in 2014 and £3.9m in 2020 to purchase residential and commercial property.
Dance faces three extra charges of dishonestly misrepresenting WealthTek’s regulatory permissions to enable alleged fraud, the FCA said.
He has been released on bail to appear at North Tyneside Magistrates’ Court on January 3.
John Dance (centre) accepting a trophy at Newmarket after his horse Laurens was the victor
The FCA have said their investigation is ‘one of the most serious and largest frauds’ they have ever investigated (pictured: Dance (left) in Chantilly, France in June 2018)
Dance 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.
More than eight in ten affected clients are expected to be fully compensated, the watchdog said.
Therese Chambers, 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.’
After the probe was launched, Dance’s horses were initially barred from racing before the British Horseracing Authority reinstated permission.
Earlier this year, Dance put 50 of his horses up for sale, including his share in the Paul Nicholls-trained Bravemansgame.
And his Newcastle city centre nightclub, The Loft, where Dance used to DJ, collapsed in July 2023 – with 81 jobs lost.
