The Financial Conduct Authority has prioritised criminal proceedings against DFM firm WealthTek and principal partner John Dance.
On Friday (1 March), the High Court granted the regulator’s request for a 12-month pause in its civil case against Mr Dance and the Newcastle-based IFA firm
The civil case against WealthTek concerns serious regulatory breaches relating to client money and custody assets and criminal offences of fraud and money laundering.
“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 regulator said.
Last April, the FCA ordered WealthTek to cease operations. The regulator then appointed interim managers Shane Crooks, Mark Shaw and Emma Sayers of BDO LLP, through the High Court, to take control of the IFA firm pending a court hearing.
Mr Dance was arrested following a joint operation by Northumbria Police and the FCA.
The 49-year-old principal partner was interviewed under caution by FCA officials.
In November, the FCA secured a restraint order against him.
The order is intended “to preserve assets and make them available for a future confiscation order, which can only be made following a criminal conviction”.
WealthTek is an FCA authorised and regulated wealth management firm that provides discretionary, advisory and execution only services to their retail clients.
The firm also trades under the names Vertem Asset Management and Malloch Melville.
The regulator said it is in close contact with the firm and the interim managers regarding the fair treatment of customers.
