"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. "
- Therese Chambers, joint executive director of enforcement and market oversight at the FCA
The FCA has charged John Dance, principal partner at WealthTek, with nine criminal offences, including multiple counts of fraud and money laundering.
WealthTek, formerly known as Vertus Asset Management, is a wealth management firm that was regulated by the FCA from January 2020 until April 2023 when the regulator ordered the firm to cease operations and appointed special administrators.
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, meaning it could carry out certain regulated activities under Sapia’s supervision.
Dance is accused of fraudulently abusing his position of trust at Vertus and WealthTek for his own personal gain. Between 2014 and 2023, the FCA says Dance transferred over £64 million from client accounts of Vertus and WealthTek to accounts he controlled, which the FCA alleges he used to fund a lavish lifestyle and other business interests including horseracing and a nightclub.
The FCA alleges Dance laundered the proceeds of his criminality through his personal and business bank accounts, including the transfer of £723,000 to purchase six racehorses, and £806,500 in 2014 and £3.9 million 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 3rd January 2025.
A restraint order obtained by the FCA against John Dance, which aims to preserve assets to make them available for a future confiscation order, remains in place.
The special administration of WealthTek is continuing and its clients have begun to receive their assets and compensation. Approximately 84% of people affected will be compensated in full.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, 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.”
