Daniel Pugh has been found guilty of fraud, following a prosecution by the FCA.
Mr Pugh, aged 35 and of Devon, set up a Ponzi scheme that netted over £1m. Through his fraudulent Imperial Investment Fund (IIF), Mr Pugh took money from 238 investors he targeted largely through Facebook adverts. They were offered impossibly high returns of 1.4% a day, 7% a week or 350% a year.
The FCA will commence confiscation proceedings in order to recover the proceeds of crime.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said:
'Mr Pugh deliberately defrauded unsuspecting investors. Fighting financial crime is a priority for the FCA and we are committed to holding fraudsters to account.’
Mr Pugh was today found guilty of one count of conspiracy to defraud. At the start of the trial he pleaded guilty to carrying out unauthorised regulated activity which breached sections 19 and 21 of the Financial Services and Markets Act 2000.
A further individual remains wanted in relation to the same offences.
Notes to editors
- Daniel Pugh’s date of birth is 19 April 1990.
- The FCA has attempted to contact investors who lost out. Anyone who was scammed by IIF and has not heard from the FCA should call or email [email protected].
- The FCA’s ScamSmart[2] page has advice on how to spot and avoid investment scams.
- Mr Pugh was charged on 18 July 2023.
- Mr Pugh’s trial took place at Southwark Crown Court.
- Conspiracy to defraud is an offence under common law with a maximum sentence of 10 years’ imprisonment.
- Under section 19 of FSMA, a person cannot carry on a regulated activity in the UK unless they are FCA authorised or exempt. Any person who breaches this is committing a criminal offence for which the maximum sentence is two years’ imprisonment.
- Under section 21 of FSMA, a person must not communicate an invitation or inducement to invest unless they are FCA authorised or the content of the communication is approved by an authorised person. Any person who breaches this is committing a criminal offence for which the maximum sentence is two years’ imprisonment.