Michael Goodwin KC has successfully prosecuted former Kent Police Sergeant Michael Stanley, for his part in the setting up and operation of an elaborate and massive £44m Ponzi fraud.
Following an extensive investigation and the forensic analysis of a business which had operated for more than 6 years, Mr Stanley admitted to fraud and fraudulent trading that left members with a £10.5 million shortfall and shattered lives.
The fraud involved the running of the Layezy Racing Syndicate. This was a gambling scheme which had considerable traction nationally. The scheme was marketed as risk free, and Mr Stanley was supposed to gamble using member’s funds, on horses using a lay betting process that he had devised. Over the years the popularity of the scheme, which the prosecution argued had been run as an ‘investment’ opportunity, grew to over 6000 members with 3000 hopeful applicants waiting to join when it collapsed. Members received monthly reports that the value of their funds was increasing as a result of successful gambling. In truth the whole scheme was a lie. Virtually no winnings were generated and Mr Stanley lost more than he won. His fraudulent conduct involved misusing funds on a massive scale, by taking new members’ funds and using them to repay existing members, including profits to which they were not entitled. Mr Stanley made false representations and lied to his members. The investigation uncovered a £10.5m ‘black hole’ in the business when it collapsed. Many members lost all of their original investment.
Misusing the funds from members’ investments over several years, Mr Stanley benefited by more than £4 million which he spent on personal luxuries, purchasing property in Spain, race horses, high value cars, cryptocurrency and silver bullion.
In addition Mr Stanley had set up and been the director of 3 companies which had been carried on for a fraudulent purpose. The corporate vehicles had been used to grow and operate the fraud.
Following a 5 year investigation, Mr Stanley pleaded guilty to five charges, including fraud by false representation, fraudulent trading and knowingly running a business for fraudulent purposes. In addition to his prison sentence, Mr Stanley has been banned from serving as a company director for 15 years and will be subject to a five-year Serious Crime Prevention Order upon his release.
Michael was instructed by Rachael Barber of the Serious Economic Organised Crime and International Directorate (SEOCID)
Michael Goodwin KC is instructed in the most serious and complex high-profile business and financial crime cases, often involving high net worth individuals, corporate and professional clients.
Read more: [Michael Goodwin KC Profile ]
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