UK
financial regulators have charged John Dance, former principal partner of
WealthTek LLP, with nine criminal offences in what officials describe as one of
the most serious fraud cases ever investigated by the Financial Conduct
Authority (FCA).
UK Wealth Manager Charged
in £64 Million Client Fund Fraud
The charges
allege that Dance orchestrated a sophisticated scheme spanning nearly a decade,
systematically diverting more than £64 million from client accounts for
personal use. The investigation revealed a pattern of potentially fraudulent
activities between 2014 and 2023, during which Dance allegedly channeled client
funds into accounts under his control.
“This
is one of the most serious and largest frauds we have ever investigated,”
said Therese Chambers, joint executive director of enforcement and market
oversight at the FCA. “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.”
The
49-year-old wealth manager allegedly used misappropriated funds to finance an
extravagant lifestyle, including significant investments in horseracing and
nightclub ventures.
In April 2023, Finance Magnates reported that the FCA directed WealthTek LLP, operating under the trade names Vertem Asset Management and Malloch Melville, to halt operations immediately due to significant regulatory and operational concerns.
Racehorses and Properties
Court
documents reveal that Dance spent £723,000 on six racehorses, including the purchase
of Bravemansgame in 2019. Additionally, he allegedly invested over £4.7 million
in residential and commercial property acquisitions across multiple
transactions.
The charges
include three counts of fraud by abuse of position, three counts of fraud by
false representation, and three counts of money laundering under the Proceeds
of Crime Act. Prosecutors allege Dance made false representations about
WealthTek’s regulatory permissions to perpetuate the scheme.
The case seems
significant for the FCA, with charges brought within 21 months of the
investigation’s initiation – less than half the average time for similar cases.
The regulatory body has maintained a restraint order against Dance’s assets to
preserve them for potential future confiscation.
8 in 10 Investors Will
Receive Full Compensation
Meanwhile,
the special administration of WealthTek continues to process client claims,
with approximately 84% of affected investors expected to receive full
compensation.
“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,” added Chambers. ‘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.
WealthTek,
previously known as Vertus Asset Management LLP, operated under various
regulatory arrangements before obtaining direct FCA authorization in 2020.
UK
financial regulators have charged John Dance, former principal partner of
WealthTek LLP, with nine criminal offences in what officials describe as one of
the most serious fraud cases ever investigated by the Financial Conduct
Authority (FCA).
UK Wealth Manager Charged
in £64 Million Client Fund Fraud
The charges
allege that Dance orchestrated a sophisticated scheme spanning nearly a decade,
systematically diverting more than £64 million from client accounts for
personal use. The investigation revealed a pattern of potentially fraudulent
activities between 2014 and 2023, during which Dance allegedly channeled client
funds into accounts under his control.
“This
is one of the most serious and largest frauds we have ever investigated,”
said Therese Chambers, joint executive director of enforcement and market
oversight at the FCA. “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.”
The
49-year-old wealth manager allegedly used misappropriated funds to finance an
extravagant lifestyle, including significant investments in horseracing and
nightclub ventures.
In April 2023, Finance Magnates reported that the FCA directed WealthTek LLP, operating under the trade names Vertem Asset Management and Malloch Melville, to halt operations immediately due to significant regulatory and operational concerns.
Racehorses and Properties
Court
documents reveal that Dance spent £723,000 on six racehorses, including the purchase
of Bravemansgame in 2019. Additionally, he allegedly invested over £4.7 million
in residential and commercial property acquisitions across multiple
transactions.
The charges
include three counts of fraud by abuse of position, three counts of fraud by
false representation, and three counts of money laundering under the Proceeds
of Crime Act. Prosecutors allege Dance made false representations about
WealthTek’s regulatory permissions to perpetuate the scheme.
The case seems
significant for the FCA, with charges brought within 21 months of the
investigation’s initiation – less than half the average time for similar cases.
The regulatory body has maintained a restraint order against Dance’s assets to
preserve them for potential future confiscation.
8 in 10 Investors Will
Receive Full Compensation
Meanwhile,
the special administration of WealthTek continues to process client claims,
with approximately 84% of affected investors expected to receive full
compensation.
“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,” added Chambers. ‘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.
WealthTek,
previously known as Vertus Asset Management LLP, operated under various
regulatory arrangements before obtaining direct FCA authorization in 2020.
This post is originally published on FINANCEMAGNATES.
