John Dance assets to be used to benefit former clients if investigation finds against former leading owner

Assets belonging to John Dance and frozen as part of an investigation into the collapse of WealthTek LLP will be used to financially benefit the company’s former clients should there be any criminal or civil findings against the one-time prominent owner, according to administrators.

WealthTek, and associated firms Vertem Asset Management and Malloch Melville, were shut down by the Financial Conduct Authority (FCA) in April last year following the discovery of “serious regulatory and operational issues”.

Special administrators subsequently found a shortfall in client assets of £80.4 million, with Dance accused of overseeing “one of the largest frauds perpetrated by an FCA regulated individual at an authorised firm”. The FCA is conducting a criminal investigation into Dance after being granted a 12-month pause of its civil proceedings following WealthTek’s collapse.