WealthTek CEO John Dance Faces Multiple Fraud Charges Over £64 Million Scheme
John Dance, the former CEO of WealthTek, is facing criminal charges for allegedly diverting £64 million of client funds to finance personal luxuries, including prize-winning racehorses and a Newcastle nightclub. The UK’s Financial Conduct Authority (FCA) has brought nine charges against the 50-year-old, including fraud and money laundering.
According to the FCA, Dance used his position at WealthTek and its Vertus operation to embezzle client funds to support a lavish lifestyle and other business ventures. WealthTek, which also operated under the name Malloch Melville, went into administration last year after the FCA took action to protect clients’ funds.
The FCA accuses Dance of transferring money from client accounts into his personal and business accounts, including a transfer of £723,000 in 2019 to purchase six racehorses, including the successful Bravemansgame, which won the King George VI Chase in 2022. Dance also allegedly moved funds to finance residential and commercial property acquisitions, including £806,500 in 2014 and £3.9 million in 2020.
The regulator also charged Dance with making false representations regarding WealthTek’s regulatory permissions, allowing the fraudulent activities to continue. The firm had been regulated by the FCA since January 2020, after previously operating as an appointed representative of Sapia Partners.
“This is one of the most serious and largest frauds we have ever investigated,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA. “The special administration of WealthTek is continuing, and clients are starting to receive their assets and compensation, with 84% of victims receiving full reimbursement.”
Dance is currently under a restraining order to protect his assets, pending the outcome of the trial. He has been released on bail and is scheduled to appear at North Tyneside Magistrates’ Court on January 3.
At this time, Dance’s lawyers have not provided a comment on the charges.