A man who worked as a Kent police officer has been jailed for scamming millions of pounds from members of a horse racing betting group.
Michael Stanley, from Walderslade, founded the group Layezy Racing Syndicate originally for close friends and family members, but the organisation eventually amassed 6,000 members across the country.
The ex-police sergeant persuaded individuals to invest, with many trusting him due to his role in the force, under the claim that their pooled funds would be used for horse racing bets.
Incredible returns were promised, with Stanley claiming the investment was “virtually risk free”.
The 68-year-old even suggested he could turn a small sum of £1,000 into £13 million in the short space of four years.
However, the scheme generated very little profit, and Stanley fabricated winnings to make it seem more successful than it actually was.
He also paid out fake profits to some people in the group by using newer members’ cash to provide the illusion that the scheme was generating income.
Stanley stole almost £4 million from members, using the money to fund a life of luxury for himself and his family.
Maidstone Crown Court revealed that he had bought property in Spain, along with 23 racehorses, several expensive cars including a Jaguar Mark II classic car, and also splashed fraudulent funds on jewellery.
He also spent around £1 million on crypto currency.
Around £44 million was invested into the group by members between its active years of 2013 to 2019 and although £34 million was paid out, there was a “blackhole” of £10.5 million in cash.
The court established that as little as £182,000 was gained from actual gambling during the six years.
Stanley set up three companies to help him continue his fraudulent activity and spread the money in a “dishonest and chaotic manner” among 50 bank accounts.
The group eventually collapsed in February 2019 after press coverage a month earlier which said it was “nothing more than an elaborate Ponzi scheme.”
Stanley, of Resolution Close, declared himself bankrupt and was arrested shortly after.
In March this year at Sevenoaks Magistrates Court he pleaded guilty to five offences of fraud in respect of dishonestly making false representations to members of the group, knowingly running a business for a fraudulent purpose contrary to the Fraud Act 2006, and knowingly running a business for a fraudulent purpose contrary to the Companies Act 2006.
Of the 21 victims named in court documents, individual losses varied from £250 to almost half a million.
One described how, having been diagnosed with incurable leukemia, he had invested to provide for his partner and children’s future, only to lose £16,000.
However, he had been told his investment was actually worth £182,000..
The court heard one woman suffered a mental breakdown as a result of losing the money she had invested. She told police she had trusted Stanley because of his police background.
“I may be old-fashioned but I thought the police were meant to protect you,” she added.
During court proceedings, Stanley urged that he should be spared jail, saying: “I’m very sorry for the hurt I have caused.
“It was committed at a time of great strain. This was not normal behaviour. I fully accept my guilt and I am sincere in my remorse.”
But after jailing him for six years, Judge Gareth Branston said the fact he had been a serving officer had “bolstered his trustworthiness” until press coverage revealed the scheme for what it truly was.
Referring to how Ponzi schemes usually failed due to the use of investors’ funds to pay others, the judge added: “You managed to keep it on track for years with your deceit and manipulation.
“It was sophisticated, prolonged and directed at as many victims as you could find. It was of a magnitude far beyond most frauds, even serious frauds, seen at this court.”
If you have been scammed and need help to recover your money fill out our Fraud Reclaim Form or call us for advice on 0333 0033218.