The Financial Conduct Authority (FCA) has charged former principal partner at WealthTek John Dance with nine criminal offences, including multiple counts of fraud and money laundering.
Prior to WealthTek obtaining direct authorisation from the FCA in 2020, the firm called Vertus at that time operated first as a trading name and then as an appointed representative of Sapia Partners LLP (Sapia), meaning they could carry out certain regulated activities under Sapia’s supervision.
The FCA has accused Dance of fraudulently abusing his position of trust at Vertus and WealthTek for his own personal gain.
The regulator said that between 2014 and 2023, Dance transferred over £64m from client accounts of Vertus and WealthTek to accounts he controlled, which the FCA alleged he used to fund a ‘lavish lifestyle’ and business interests including horseracing and a nightclub.
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The FCA has further alleged Dance laundered the proceeds of his criminality through his personal and business bank accounts, including the transfer of £723,000 to buy six racehorses, including Bravemansgame in 2019. It also alleged he spent £806,500 in 2014 and £3.9 million in 2020 to purchase residential and commercial property.
Dance has also been charged with three further offences of dishonestly making false representations about WealthTek’s regulatory permissions in order to continue his alleged fraud.
He 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 Dance remains in place.
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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 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.”
