A former police officer who formed a racing syndicate has seen his companies go into liquidation during a fraud probe.

Mike Stanley, from Maidstone, declared bankruptcy in February leaving possibly thousands of investors out of pocket and sparking an investigation into his finances.

His company Layezy Racing and his subsequently created owners club offered prospective stakeholders the chance to swell their savings accounts by trusting in bets placed on horse races.

Shortly after his bankruptcy the British Horseracing Authority (BHA) imposed a ban on 23 horses owned by Mr Stanley and directed people to Action Fraud, the UK’s national reporting centre for fraud and cyber-crime.

However, that ban has since been lifted as financial consultancy firm Duff and Phelps, appointed to handle the bankruptcy, have taken ownership of the animals.

Four companies owned by Mike Stanley; Layezy Ltd, Layezy Racing Ltd, Number 1 Guide Ltd, and Stanley Property Services Ltd were all subject to winding up orders and put into compulsory liquidation on Wednesday, May 8.

On Wednesday, May 15 Philip Duffy and Allan Graham of Duff and Phelps were appointed as joint liquidators.

A statement released by The Insolvency Service said: "If you have invested in the Layezy Racing Owners Club you should contact the trustees to register as a creditor.

"If you have information or intelligence relating to the bankruptcy of Mr Stanley you can email this to us, please quote reference number BKT5069848 and include supporting documentation."

A source close to the liquidator said an investigation into Mr Stanley's financial affairs would look at how many investors are involved, if any are owed money, and how much that might be.

Little more than a week after Mr Stanley declared bankruptcy, police carried out a warrant at an address in Kent and a man is attending a police station voluntarily as part of an investigation into the alleged fraudulent practices of a betting syndicate.

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