Top owner sells 50 horses after arrest for allegedly masterminding ‘one of the biggest frauds ever’
TOP racehorse owner John Dance is selling more than 50 of his horses after being arrested for his alleged role in ‘one of the largest frauds ever perpetrated’.
Prominent owner Dance saw his investment firm WealthTek shut down by the Financial Conduct Authority last year amid reports of an alleged £80million blackhole in client funds.
Dance was arrested last April and earlier this month the FCA accused him of overseeing ‘one of the largest frauds perpetrated by an FCA regulated individual at an authorised firm’.
The owner and part-time DJ’s assets were also hit with a £40m worldwide freezing order and he sold his share in superstar jumps horse Bravemansgame.
Now more than 50 of his horses will go under the hammer after being listed in the Tattersalls Guineas Breeze-Up and Horses In Training Sale.
The lots, owned by Coverdale Stud or Titanium Racing Club, the names under which Dance’s former horses could run following his arrest, will be up for sale from May 1.
Among them is the first foal of six-time Group 1-winning mare Laurens.
The development comes just weeks after the FCA successfully argued for civil proceedings to be paused so a criminal investigation into Dance could have priority.
In November last year, the freezing order against him was upgraded to a restraint order under the Proceeds of Crime Act.
While in January the FCA applied to have the probe into possible regulatory breaches postponed so any alleged criminal offences of fraud and money laundering could be prioritised.
This was approved by a judge after hearing evidence from the FCA.
Their investigation into Dance alleged almost £50m went from WealthTek to Dance.
They also alleged ‘earlier misconduct’ with ‘suspicious flows of client money and assets of about £21m from WealthTek to Dance in the period between 2014 and 2020’.
The FCA alleged Dance’s actions amounted to possibly ‘one of the larges frauds perpetrated’.
Dance has not responded to the allegations.
According to a report in the Racing Post, the FCA said Dance has not given any indication of what his defence may be to the allegations of ‘receiving and diverting tens of millions of pounds of client money to his personal bank accounts and the apparent forgery of a letter setting out his FCA permissions’.
In a statement, the FCA said: “The investigation into suspected criminal offences in respect of WealthTek LLP and Mr Dance continues.
“Progress in that investigation has led us to focus our resources on the suspected criminal offences.
“The option to restart our civil case remains open to the FCA.
“The restraint order for Mr Dance remains in place.
“The purpose of the order is to preserve assets and make them available for a future confiscation order, which can only be made following a criminal conviction.
“The special administration ordered by the High Court also remains.
“The BHA remains responsible for matters relating to Mr Dance’s participation in horseracing activities.”