The Financial Conduct Authority (FCA) has brought criminal charges against the partner of a wealth management firm, claiming he transferred £64m from client accounts, using the money to buy racehorses, residential and commercial property and to fund a nightclub business.
The FCA is charging John Dance, principal partner at WealthTek LLP — formerly known as Versus Asset Management — with nine criminal offences, including multiple counts of fraud and money laundering.
Dance is accused of fraudulently abusing his position of trust at Vertus and WealthTek for his own personal gain. The FCA alleges that £64m of customers funds were transferred into account he controlled and used to fund a laivish lifestyle and other business interests which included horse racing and nightclubs.
It is alleged 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 purchase residential and commercial property.
Dance is also charged with three further offences of dishonestly, making false representations about WealthTek’s regulatory permissions to continue his alleged fraud.
Dance has been released on bail and will appear at North Tyneside Magistrates’ Court on 3 January 2025. The Restraint Order obtained by the FCA against John Dance remains in place.
The special administration of WealthTek is continuing and its clients have begun to receive their assets and compensation. Approximately 84 per cent of people affected will be compensated in full. The FCA will continue to work with all parties as both the WealthTek special administration and the criminal proceedings continue.
The FCA noted that prior to WealthTek obtaining direct authorisation from the FCA in 2020, Vertus operated first as a trading name and then as an appointed representative of Sapia Partners LLP, meaning they could carry out certain regulated activities under Sapia’s supervision.
FCA joint executive director of enforcement and market oversight Therese Chambers says “This is one of the most serious and largest frauds we have ever investigated.
We allege that over a period of many years 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.”