Former Police Sergeant Sentenced to Prison for Million-Pound Fraud Scheme

Michael Stanley (68), a former Sergeant of the Kent Police in England, was sentenced to six years in prison by the Maidstone Crown Court. Stanley pleaded guilty in March to running a Ponzi scheme that defrauded over 6,000 people with fake sports betting profits, resulting in one victim losing over 500,000 GBP. He was arrested in 2019.

Ponzi Scheme Earned Stanley Millions

Stanley’s fraudulent Layzey Racing Syndicate promised secure returns from horse race bets, using new investors’ money to pay off earlier ones. Despite initial success, the scheme collapsed, revealing fabricated winnings and substantial losses for victims.

What is a Ponzi Scheme?

A Ponzi scheme deceives investors with false promises of high returns, using new investments to repay earlier ones until it collapses. Notable schemes include Bernie Madoff’s 65 billion USD fraud.

Millions of GBP Vanished

Over 44 million GBP was deposited into Stanley’s scheme as "99% risk-free," with 34 million GBP paid out and around 10 million GBP unaccounted for. Stanley spent a significant portion of the illicit funds on personal luxuries, including real estate, luxury cars, cryptocurrencies, and racehorses, totaling over four million GBP.

Victims Speak Out

Terry Wildey, who invested 200,000 GBP, called Stanley a "rat" for betraying investors’ trust. Another investor, Angela Elven, emphasized the negative impact on people’s lives and the need for Stanley to face consequences.

Stanley was sentenced to six years in prison, banned from business management for 15 years, and would serve half his sentence in prison with the remainder on probation, along with a five-year crime prevention order upon release.