Police Launch Fraud Investigation Into Deva Racing Collapse

West Mercia Police has opened a formal fraud investigation into the collapse of racehorse ownership syndicate Deva Racing, which entered liquidation in July with creditors claiming debts totalling £2.15 million.

The investigation follows allegations surrounding unpaid prize-money and horse sale proceeds, outstanding training fees, the overselling of ownership shares and the alleged sale of fictitious hospitality packages.

Owners connected to Deva Racing were contacted by police this week and informed that formal witness statements would be required. They have also been asked to submit reports through Report Fraud as investigators examine the circumstances surrounding the syndicate's collapse.

Police Describe ‘Complex Fraud Investigation’

In correspondence sent to Deva Racing owners, an officer said they were overseeing a “complex fraud investigation” to establish “whether any criminal offences have been committed”.

Owners were warned that the investigation is likely to take “some time rather than expecting a quick resolution”.

West Mercia Police subsequently confirmed the investigation, saying:

“We can confirm that a fraud investigation is taking place in connection with a horseracing syndicate.”

No finding of criminal wrongdoing has been made, with the investigation currently seeking to determine whether any offences took place.

The police investigation adds to separate inquiries already being conducted by the British Horseracing Authority (BHA) and Emirates Racing Authority. Horses wholly or partly owned by Deva Racing have been prevented from racing in Britain since 23 July.

Deva Racing Entered Liquidation With £2.15 Million Debt

Deva Racing was placed into liquidation by director Ryan Tongue in July, bringing an end to an ownership operation that had previously enjoyed success at a high level of international racing.

Imperial Emperor was among its most prominent horses, winning the Group 1 Al Maktoum Challenge at Meydan in Dubai in January.

Following the syndicate's collapse, creditors lodged claims totalling £2.15 million. Allegations subsequently emerged concerning money owed to owners and trainers, as well as the handling of ownership shares and hospitality packages.

Tongue has not responded to repeated requests for comment from the Racing Post, including its latest approach following confirmation of the police investigation.

Director Cited Cash-Flow And Operational Pressures

In a submission to liquidator Leonard Curtis, Tongue attributed the failure of Deva Group Racing Limited to a combination of financial and operational difficulties.

He cited “challenging market conditions, cash-flow pressures, operational challenges, unexpected costs, the loss of a key trainer relationship and ill health” among the factors that led to the company's collapse.

Leonard Curtis is overseeing the liquidation process, while the police, BHA and Emirates Racing Authority investigations remain ongoing.