Former principal partner at WealthTek LLP, John Dance, has been charged by the Financial Conduct Authority (FCA) with nine criminal offences, including multiple counts of fraud and money laundering.

WealthTek was a wealth management firm, which was previously known as Vertus Asset Management LLP.

Prior to WealthTek obtaining direct authorisation from the FCA in 2020, Vertus first operated as a trading name and then as an appointed representative of Sapia Partners LLP, meaning it could carry out certain regulated activities under Sapia’s supervision.

Dance was accused of fraudulently abusing his position of trust at Vertus and WealthTek for his own personal gain.

The FCA stated that, between 2014 and 2023, Dance transferred more than £64m from Vertus and WealthTek client accounts into accounts that he controlled, which the regulator alleged he used to fund a "lavish lifestyle" and other business interests.

It alleged that Dance laundered the proceeds through his personal and business bank accounts, including the transfer of £723,000 to purchase six racehorses in 2019, and £3.9m in 2020 to buy property.

Dance was also charged with a further three offences of dishonestly making false representations about WealthTek’s regulatory permissions to continue his alleged fraud.

He has been released on bail and will appear at North Tyneside Magistrates' Court on 3 January 2025, while the Restraint Order obtained by the FCA against Dance remains in place.

WealthTek’s special administration is continuing, and its clients have started to receive their assets and compensation.

Around 84% of the people affected will be compensated in full, while the FCA said it would continue to work with all parties as both the WealthTek special administration and the criminal proceedings continue.

"This is one of the most serious and largest frauds we have ever investigated," said joint executive director of enforcement and market oversight at the FCA, Therese Chambers.

"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."

---