A former police sergeant turned professional gambler who ran a fraudulent betting syndicate scamming customers including friends and family out of at least £44 million lived a life of luxury on their cash.

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

He also bought £1.6 million of cryptocurrency and £622,000 worth of silver bullion, while his clients were making no profits.

But, he has since been jailed after he was investigated by his former employer in what it called one of its most complex investigations ever.

A force spokesperson said he was today “sentenced to six years’ imprisonment following one of the most complex investigations of its nature in the history of Kent Police.”

Stanley, from Chatham, ran an elaborate Ponzi scheme whereby he convinced more than 6,000 gamblers that his formula for betting on the outcome of horse races would result in a higher percentage of positive outcomes.

In reality, his Layezy Racing syndicate was failing but Stanley continued to falsely report that the scheme had made a profit.

As such victims believed they had benefitted from successful bets when they were actually receiving money that other members had invested.

It was later established that the syndicate’s level of success was never sufficient to support the withdrawals members were making or Stanley’s own extravagant lifestyle, and evidence showed that at one point he had lost over £1 million in gambling in a single year.

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

A criminal investigation was launched and resulted in specialist Kent Police detectives analysing vast amounts of computer and financial data, and taking witness statements from a large number of affected clients.

Some considered themselves friends of Stanley or had family ties with him, and many were so convinced by the apparent success of the scheme that they invested their savings, pensions, life insurance pay-outs and other finances that they could not afford to lose.

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

In addition to the prison sentence, Stanley was also made subject to a five-year Serious Crime Prevention Order and disqualified from being 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.”

Rachael Barber from the Crown Prosecution Service said: “Michael Stanley operated a massive fraud which he marketed to unsuspecting members as ‘virtually risk-free’, whilst boasting of the huge profits from the syndicate. In reality, Stanley’s gambling losses far exceeded any winnings and the scheme was doomed to collapse at some point.

“When this inevitably happened in 2019, devastated members were left out of pocket and money they believed they had legitimately invested for weddings, retirement funds, medical treatment and other purposes was all gone.

“Stanley totally betrayed the trust placed in him by investors to manage their money wisely, and we are pleased to have secured justice for these victims”

Bankruptcy proceedings are ongoing against Stanley, however, the CPS will be pursuing a Proceeds of Crime confiscation order to ensure any assets that may become available in the future can be recovered.

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

The force has warned the public how to stay safe from other “Ponzi schemes”.

A spokesperson said: “If you are considering any type of investment, always remember – if it seems too good to be true, then it probably is.

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

“Fraudsters aim to make their businesses seem legitimate. This means they will often have impressive job titles, glossy brochures and mock websites and will organise meetings in expensive venues to look credible. If you have any suspicions about a scheme’s authenticity, investigate the company’s status and contact details.

“If you are not sure the company you are investing in is real, it could be a scam. Check the Financial Conduct Authority register before investing.

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