Fraudster Sentenced for £44 million Betting Syndicate Scam.
Michael Stanley
Ex-Kent Police officer Michael Stanley, 68 year old from Walderslade, Kent, was sentenced to six years’ imprisonment over horse racing betting fraud.
The prosecution showed that the fraud was carried out between 2013 and February 2019. Michael Stanley operated a Ponzi-style scheme under the name ‘Layezy Racing Syndicate’. He convinced more than 6,000 gamblers that his formula for betting on horse races would lead to a higher success rate. In reality his Layezy Racing syndicate was failing but Stanley continued to falsely report that the scheme had made a profit. The victims thought they were profiting from successful bets, but in truth, the money they received came from the investments of other members. He defrauded members of a horse racing betting syndicate out of millions of pounds and was spending their money on 23 racehorses, a villa and apartment in Spain for £400,000, new vehicles, expensive jewellery and he also bought £1.6 million of cryptocurrency and £622,000 worth of silver bullion.
Michael Stanley filed for bankruptcy in January 2019 shortly after allegations about the legitimacy of the scheme were published in a national newspaper. Kent Police detectives launched a criminal investigation analysing computer and financial records, as well as gathering witness statements from affected clients. In victim impact statements read to court, it was heard how one member joined the syndicate desperate for money after the death of her husband to support her three young children and lost all £115,000 she invested.
Stanley explained to the court how it began as “a bit of fun” for friends and family, eventually struggled to keep up with everything. He said he was overwhelmed by the workload in the face of his wife’s cancer diagnosis in 2014 and indicated that grief also was the reason for his behaviour.
Michael Stanley told the court: “The syndicate had taken over my life in every respect … I did not know what to do. I am very sorry for the hurt I’ve caused members and my own family. I cannot understand how I let it happen apart from my own fear of discovery.”
Judge Gareth Branston said: “Your conduct was not reckless, it was deliberate, sustained and repeated. When people gamble with you, they did not know the true odds, they were told lies. That type of Ponzi fraud is always going to collapse but you managed to keep it on track for years with your deceit and manipulation.”
Michael Stanley was charged with several fraud offences and pleaded guilty to all ahead of his sentencing at Maidstone Crown Court on Tuesday 24 September 2024. Besides the prison sentence, Stanley was imposed with a five-year Serious Crime Prevention Order and prohibited from serving as a company director for 15 years.
Detective Sergeant Alec Wood of Kent Police said: “Mike Stanley started Layezy Racing in 2010 as a legitimate source of income for himself and those who paid into the scheme, but the financial evidence showed that from 2013 onwards he was criminally cheating people out of their hard-earned money in order to maintain his own lavish lifestyle. In many cases his victims have experienced a significant impact on their lives and financial futures as a result of Stanley’s false promises, and I would like to thank them for their assistance and patience with what was a significant case in terms of its scope, complexity and administration. I hope the outcome of this investigation sends a clear message that anyone who seeks to lie and cheat their way to financial prosperity will be brought to justice.”
A Ponzi scheme is a fraudulent investment operation that compensates initial investors using the funds contributed by subsequent investors, thereby creating a false perception of substantial profits. This type of scheme offers the allure of high returns with minimal risk to participants. It primarily depends on referrals, as potential investors are attracted by the impressive gains reported by those who joined earlier.
8 of the most notorious Ponzi schemes of all time
1. Charles Ponzi – $15 million
2. Lou Pearlman – $300 million
3. Gerald Payne and Greater Ministries International – $448 million
4. Reed Slatkin – $593 million
5. Scott Rothstein – $1.2 billion
6. Tom Petters – $3.7 billion
7. R. Allen Stanford – $7 billion
8. Bernie Madoff – $20 billion