Horses owned by Layezy Racing barred from competing due to bankruptcy order

A total of 23 horses owned by Layezy Racing Owners Club, including a forecast favourite at Fakenham on Friday, have been barred from running until further notice after the club's founder, Mike Stanley, filed for bankruptcy on Monday.

Stanley's bankruptcy order has prompted fears among those who signed up to the club and also the Layezy Racing betting syndicate that they could stand to lose significant amounts of money.

The club was in operation from last April, and Nickelsonthedime was due to compete in the 2m bumper at the Norfolk track. Formerly with Keith Dalgleish, the five-year-old was set to have his first run for Kayley Woollacott and had been installed the top-priced 7-4 favourite.

Since coming into existence, the club has had a handful of runners, with Fearless the most recent when finishing fifth in a Listed bumper at Cheltenham on New Year's Day on debut for Rebecca Menzies.

As well as Menzies, the club had runners with other trainers including John Best, Amy Murphy and Ivan Furtado.

A BHA spokesman said on Thursday: "The BHA was alerted this morning to the fact that Mike Stanley, owner of 23 horses through the Layezy Racing Owners Club, declared himself insolvent on Monday, February 11. Under the Rules of Racing, insolvent individuals or entities are not permitted to own and run racehorses. As such, those horses will not be allowed to run until further notice.

"The BHA is contacting the trainers responsible for the relevant horses to ensure they are sufficiently informed about the current situation and what support is available to them, and will work with the trainers to ensure the horses continue to receive the first-class care they are accustomed to in their yards. This is a complex situation and the BHA is working with the relevant authorities to assist in any way it can.

"Anyone financially involved or dependent upon the Layezy Racing Owners Club Syndicate will receive updates from the Trustees in Bankruptcy via the Layezyinvestors@duffandphelps.com email address. Anyone who feels they may be a victim of fraud can contact Action Fraud, the UK’s national reporting centre for fraud and cyber-crime."

London-based insolvency experts Duff & Phelps has been appointed as trustee in the bankruptcy and is starting the process of realising assets and continuing to obtain investor claims.

The betting syndicate Stanley founded was based on the idea he had found a way to make long-term gains from backing horses to lose on the betting exchanges.

One member who invested, Steve, claimed: "It has destroyed a lot of people, some people have put pension funds in and things like that."

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