Former police officer jailed after defrauding 6,000 players | UK | News

A former police sergeant turned professional gambler ran a fraudulent betting syndicate that defrauded customers, including friends and family, of at least £44 million and used his money to live a life of luxury.

Mike Stanley, 68, a former Kent Police sergeant, spent their money on a lavish lifestyle, including 23 racehorses, a £400,000 property in Spain, several new cars and expensive jewellery.

He also bought £1.6 million worth of cryptocurrency and £622,000 worth of silver bars while his clients made no profit.

However, he has since been arrested after his former employer launched an investigation into him, which he said was one of the most complex investigations in the company’s history.

A police spokesman said he was today “sentenced to six years in prison in one of the most complex investigations of its kind in Kent Police’s history”.

Stanley of Chatham ran an elaborate pyramid scheme in which he convinced more than 6,000 players that his formula for betting on the outcome of horse races would lead to a higher percentage of positive results.

In reality, his Layezy Racing syndicate was bankrupt, but Stanley continued to falsely claim that the system was profitable.

The victims believed they had profited from successful bets, while in reality they received the money that other members had invested.

It was later discovered that the syndicate’s success rate was never enough to finance members’ withdrawals or Stanley’s extravagant lifestyle, and evidence showed that he had once lost over a million pounds gambling in a single year.

Stanley, of Resolution Road, Walderslade, filed for bankruptcy in January 2019, shortly after allegations about the legality of the scheme were published in a national newspaper.

A criminal investigation was launched and specialist detectives from Kent Police analysed large amounts of computer and financial data and took witness statements from a large number of affected customers.

Some considered themselves friends of Stanley or had family ties to him, and many were so confident of the plan’s obvious success that they invested their savings, pensions, life insurance payouts, and other financial resources they could not afford to lose.

He was later charged with several fraud offences and pleaded guilty to all charges at Maidstone Crown Court ahead of his sentencing today, Tuesday 24 September 2024.

In addition to his prison sentence, Stanley was sentenced to a five-year serious crime prevention order and disqualified from acting as a director for 15 years.

Detective Sergeant Alec Wood, of Kent Police, said: “Mike Stanley set up Layezy Racing in 2010 as a legitimate source of income for himself and those who paid into the scheme. However, financial evidence showed that from 2013 onwards he was criminally defrauding people of their hard-earned money to maintain his own lavish lifestyle.

“In many cases, Stanley’s false promises have had a significant impact on the lives and financial futures of his victims and I would like to thank them for their support and patience in this significant case in terms of its scope, complexity and administration.

“I hope that the outcome of this investigation sends a clear message that anyone who attempts to gain financial wealth through lying and cheating will be brought to justice.”

Rachael Barber, prosecuting, said: “Michael Stanley ran a massive fraud which he sold to unsuspecting members as ‘virtually risk-free’ while boasting about the syndicate’s huge profits. In reality, Stanley’s gambling losses far exceeded any winnings and the system was doomed to collapse at some point.

“When this inevitably happened in 2019, devastated members were left with their money stuck, and the money they believed they had rightfully invested for weddings, retirement plans, medical treatment and other purposes had disappeared.

“Stanley completely abused investors’ trust to manage their money wisely, and we are pleased to have achieved justice for these victims.”

Stanley is currently in bankruptcy proceedings, but the CPS will seek a proceeds of crime order to ensure that any assets that may become available in the future can be recovered.

If you believe you have been a victim of fraud, contact your bank immediately and report the incident to Action Fraud on 0300 123 2040 or online.

Police have warned the public how to protect themselves from other “pyramid schemes.”

A spokesman said: “When considering an investment of any kind, always remember: if it sounds too good to be true, it probably is.

“There is no such thing as a guaranteed risk-free investment. High returns can only be achieved with high risk.”

“Scammers want their company to appear legitimate. This means they often have impressive job titles, glossy brochures and fake websites, and organize meetings in expensive locations to appear credible. If you have any doubts about the authenticity of a scam, check the company’s status and contact details.

“If you are unsure whether the company you are investing in is genuine, it could be a scam. Check the Financial Conduct Authority register before investing.

“Always ask simple questions about the company and the program. Be alert and be more persistent if they try to avoid questions. They should be prepared to tell you everything you want to know.”