The Financial Conduct Authority has charged the former partner of investment firm WealthTek with nine criminal offences and abusing his position for his own personal gain
John Dance, 50, is accused of transferring £64m of funds from clients’ accounts while working as the principal partner at WealthTek, formerly Vertus Asset Management.
The FCA labelled the alleged fraud as ‘one of the largest and most serious frauds’, which last for a decade between 2013 and 2023. The money is alleged to have been partly used to fund the purchase of six racehorses, a nightclub, as well as funding his lavish lifestyle.
The FCA alleges that in 2019 Dance used £723,000 of laundered money to purchase six racehorses, including Cheltenham Gold Cup runner up Bravemansgame. Dance owned almost 60 horses in total. Additionally, there is an allegation that Dance purchased residential and commercial property for £3.9m in 2014.
As well as charges of fraud and money laundering, Dance has been charged with three offences of dishonestly making false representations about WealthTek permissions from financial regulators.
Dance is set to appear at North Tyneside Magistrates’ Court in Newcastle on 3 January 2025 after being released on bail, with the FCA restraint order still in place which has confiscated Dance’s assets so they are available for compensation.
Therese Chambers, joint executive director of enforcement at the FCA, 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.'
Approximately 84% of the victims are expected to be compensated in full.
WealthTek was initially regulated by the FCA in 2020, and in 2023 told WealthTek to halt all operations. BDO was appointed as the administrator in 2023 and has identified a current custody asset shortfall of over £70m.