The FCA charged John Dance with 9 criminal offences, including multiple fraud and money laundering counts.

This case is considered one of the most serious and largest frauds ever investigated by the FCA.

1. John Dance, a prominent racehorse owner and principal partner at WealthTek, has been charged by the Financial Conduct Authority (FCA) with nine criminal offences, including multiple fraud and money laundering.
2. The FCA alleges that Dance transferred over £64 million from WealthTek's (formerly Vertus Asset Management) client accounts to fund a lavish lifestyle and other business interests, such as horseracing and a nightclub.
3. The charges also include accusations of false representations about WealthTek’s regulatory permissions.
4. Dance has been released on bail and is due to appear at North Tyneside Magistrates’ Court on January 3, 2025.
5. The FCA has also obtained a restraint order to preserve assets for potential future confiscation

SOURCE

• https://www.fca.org.uk/news/press-releases/fca-charges-john-dance-offences-related-wealthtek

MORE INFO

1. John Dance was the principal partner at WealthTek LLP (formerly known as Vertus Asset Management LLP (Vertus)), a wealth management firm.
2. Mr Dance is accused of fraudulently abusing his position of trust at Vertus and WealthTek for his gain. Between 2014 and 2023, Mr Dance transferred over £64m from Vertus and WealthTek's client accounts to accounts he controlled, which the FCA alleges he used to fund a lavish lifestyle and other business interests, including horseracing and a nightclub.
3. The FCA alleges Mr Dance laundered the proceeds of his criminality through his personal and business bank accounts, including the transfer of £723,000 to purchase six racehorses, including Bravemansgame in 2019, and £806,500 in 2014 and £3.9m in 2020 to buy residential and commercial property.

SPECIAL ADMINISTRATION

1. WealthTek's special administration is continuing, and its clients have begun to receive their assets and compensation.
   1. https://www.fca.org.uk/news/fca-orders-wealthtek-cease-operations-high-court-appoints-interim-managers
2. Approximately 84% of people affected will be compensated in full. The FCA will continue working with all parties as the WealthTek special administration and the criminal proceedings continue.

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 many years Mr Dance diverted millions of client funds for his 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. 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.'

COMMENT

• This case again shows why managers and controllers tend to be fraud-prone.
• It is worrying that no one picked up the fraud earlier – the auditors should have spotted massive transfers unless Mr Dance explained them away.

Source:  

• FCA charges WealthTek boss with £64mn fraud - FTAdviser. https://www.ftadviser.com/financial-conduct-authority-uk/2024/12/19/fca-charges-wealthtek-boss-with-64mn-fraud-/.
• FCA charges WealthTek partner with nine criminal offences over £64m fraud. https://www.financialreporter.co.uk/fca-charges-wealthtek-partner-with-nine-criminal-offences-over-64m-fraud.html.
• https://www.fca.org.uk/news/press-releases/fca-charges-john-dance-offences-related-wealthtek