PUNTERS’ £1m FIGHT
New twist in Layezy losses row
INVESTORS in the doomed Layezy Racing gambling syndicate are considering legal action after administrators estimated their fees will exceed £1million — over a quarter of the cash recovered to date.
In the eight months since ex-Kent Police officer Michael Stanley closed down the syndicate and declared bankruptcy, following a Sportsmail investigation, insolvency experts at Duff & Phelps have been analysing how the syndicate operated.
Many members, who are mainly from Kent and Essex, have expressed concerns that the syndicate was a Ponzi scheme and they may never recover the money they invested.
Duff & Phelps sent an update to creditors this week saying they have recovered just over £4m so far following the investigation of 66 separate bank accounts and hope to get back more than £5.7m.
However, syndicate members are angry at what they consider ‘excessive expenditure’ by Duff & Phelps, who have claimed £813,000 and estimate that by the end of the year the figure will be just under £1.1m.
Although the fees were approved by a committee of creditors, some members have threatened to take the matter to court.
A spokesperson for Duff & Phelps stated: ‘All fees were agreed by the Creditors Committee after offering a 20 per cent discount.’
When Stanley filed for bankruptcy, he told case officers he owed £22m, though there has been speculation that the syndicate liability could be as much as £80m.
Kent Police arrested Stanley in August in connection with alleged fraud offences and he remains on bail.