Members of betting syndicate fear they could lose £70m

Members of a betting syndicate who alleged the company owner was running a Ponzi scheme fear they may have lost up to £70m in savings.

The news comes after Phil Duffy and Allan Graham, both of Duff & Phelps, were appointed joint trustees in bankruptcy over Michael Stanley, operator of the Layezy Racing Owners Club and the Layezy Betting Syndicate, on 14 February 2019.

Some 5,000 people are reported to be affected by the syndicate, which was run by Stanley, a former police officer.

According to posts on social media, members of the syndicate allege that he had not been placing their bets for some time and has now run-up a shortfall of around £70m.

A spokesperson for the British Horse Racing Authority (BHA) said: “The BHA was alerted to the fact that Mike Stanley, owner of 23 horses through the Layezy Racing Owners Club, declared himself insolvent on Monday 11 February. Under the Rules of Racing, insolvent individuals or entities are not permitted to own and run racehorses. As such, those horses will not be allowed to run until further notice.

“The BHA is contacting the trainers responsible for the relevant horses to ensure they are sufficiently informed about the current situation and what support is available to them, and will work with the trainers to ensure the horses continue to receive the first class care they are accustomed to in their yards. This is a complex situation and the BHA is working with the relevant authorities to assist in any way it can.”

A statement from Duff & Phelps said: “Duff & Phelps is starting the process of realising assets and continuing to obtain investor claims.”