In the UK, a previous policeman has been found guilty of perpetrating a vast horse racing swindle worth millions.
In the English county of Kent, a former police officer named Michael Stanley (68), originally serving as a sergeant, was given a six-year prison sentence by Maidstone Crown Court. This came after being found guilty of participating in a fraudulent scheme that brought him substantial wealth.
Ponzi Scheme Gave Stanley Fortune
Michael Stanley (68), a former Kent police officer in England, was sentenced [Link in English] by Maidstone Crown Court [Link to court] to six years in prison. In March, Stanley admitted guilt [Link to admission] in running a Ponzi scheme, deceiving over 6,000 individuals with promises of sports betting winnings between 2016 and 2019. One victim lost over half a million GBP. Stanley was apprehended in 2019.
His actions were intentional, consistent, and recurring. Those who invested in him were unaware of the true odds. They were fed lies, as stated by judge Gareth Branston in the Michael Stanley trial, BBC.
The fraud scheme operated by Stanley under the guise of a Ponzi scheme through his Layzey Racing Syndicate. Its secure returns and the long waiting list, coupled with initial victories, gave the impression of an elite and lucrative system. However, Stanley used new investors' money to compensate earlier ones. In reality, the betting profits were non-existent. Stanley consistently lost money, causing major losses for many victims.
What is a Ponzi Scheme?
A Ponzi scheme is a particular type of pyramid scheme. It's a fraudulent financial strategy that promises high returns to investors, devoid of genuine profits. Investment returns are funded with money from new investors rather than actual earnings. The scheme appears sustainable so long as new investments continue to flow in, but it inevitably collapses when new investments cease.
Notable Ponzi Schemes:
- Bernie Madoff: The largest Ponzi scheme in history, reportedly leading to losses of around 65 billion USD.
- Charles Ponzi: The scheme's namesake, who defrauded investors with fake international postal reply coupons in the 1920s.
- Tom Petters: A US businessman responsible for a 3.65 billion USD Ponzi scheme in the 2000s.
- Allen Stanford: Culpable for a 7 billion USD Ponzi scheme by means of fake investments in certificates.
- Gerald Payne (Greater Ministries International): A religious Ponzi scheme in the US, causing losses of 500 million USD.
Millions in GBP at Stake
A staggering 44 million GBP was invested in Stanley's Layzey Racing Syndicate, touted as an investment with a 99% limited risk by the UK magazine Independent [Link to article]. 34 million GBP was returned to members, while approximately 10 million GBP remains unaccounted for.
Stanley splurged a considerable amount of the illegally acquired funds on personal luxuries. He declared in court that he had to use the funds due to his wife's cancer diagnosis in 2014. Instead, he purchased a multi-million GBP Spanish property, several luxury cars, cryptocurrencies, and 23 racehorses. In total, the ex-officer spent over four million GBP.
Affected Parties Speak Out
Several victims of Stanley's Ponzi scheme have addressed the BBC. Terry Wildey, a retired hairdresser from Kent, has expressed great anger towards Stanley. He and his family had invested around 200,000 GBP into the syndicate, and Wildey had even persuaded his own relatives to join. In Wildey's eyes, Stanley is just a rat who took advantage of investor trust.
Stanley was running a massive fraud, pitching it to unsuspecting members as "practically risk-free" while boasting about the syndicate's outstanding profits. In truth, Stanley's losses in gambling far surpassed the gains, and the strategy was doomed to fail. Rachael Barber, a member of the prosecution team in the Michael Stanley case, igamingbusiness stated, "Stanley was nothing more than a swindler who preyed on the vulnerable."
Angela Elven, who had invested around 5,000 GBP, described Stanley as trustworthy due to his serious demeanor. She acknowledged that the victims had believed they were making a safe investment, and that Stanley had destroyed the lives of many people. She believes he should be held accountable for his actions.
As of now, these consequences are taking place. In addition to his six-year prison sentence, Stanley was disqualified from functioning as a company director for 15 years. He is anticipated to serve half of his sentence in prison and the remaining time on probation. Furthermore, a five-year Serious Crime Prevention Order will take effect upon his release to prevent future criminal activities.
In light of his crimes, Michael Stanley's (68) online activities have come under scrutiny. It was discovered that he ran an online casino under the name 'Layzey Racing Syndicate', offering illegal gambling opportunities to German players as well.
Following his conviction, the UK Gambling Commission launched an investigation into Stanley's online casino activities, with potential penalties for violating gambling laws in both the United Kingdom and Germany.
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