Key Insights
- Daniel Pugh was convicted of running a £1 million Ponzi scheme through Imperial Investment Fund, targeting 238 investors via Facebook ads with promises of up to 350% annual returns.
- He was found guilty of conspiracy to defraud and had earlier admitted to unauthorised regulated activity in breach of sections 19 and 21 of the Financial Services and Markets Act 2000.
LONDON, (MarketsXplora) – Daniel Pugh, 35, from Devon, has been found guilty of fraud after running a £1 million Ponzi scheme that lured hundreds of investors with promises of extraordinary returns, the UK Financial Conduct Authority (FCA) said on Friday.
Operating under the name Imperial Investment Fund (IIF), Pugh persuaded 238 people – many approached via Facebook adverts – to invest their money in what appeared to be a high-yield opportunity. Investors were enticed with offers of 1.4% returns per day, 7% per week, or a staggering 350% annually.
The FCA said such figures were “impossibly high” and part of a deliberate scheme to defraud.
Mr Pugh deliberately defrauded unsuspecting investors. Fighting financial crime is a priority for the FCA and we are committed to holding fraudsters to account,” said Steve Smart, the FCA’s joint executive director of enforcement and market oversight.
Daniel Pugh Guilty of Defrauding 238 Investors
Pugh was found guilty at Southwark Crown Court of one count of conspiracy to defraud. At the start of the trial, he had already admitted to carrying out unauthorised regulated activity in breach of sections 19 and 21 of the Financial Services and Markets Act 2000 (FSMA).
Under section 19 of FSMA, individuals cannot carry out regulated activities in the UK unless authorised or exempt, with a maximum penalty of two years’ imprisonment. Section 21 prohibits unapproved invitations or inducements to invest, also carrying a maximum two-year sentence. Conspiracy to defraud, a common law offence, can lead to a maximum of 10 years in prison.
The FCA confirmed it will begin confiscation proceedings to recover the proceeds of crime. A further individual remains wanted in connection with the same offences.
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Pugh was charged on 18 July 2023. His date of birth is 19 April 1990. The FCA has attempted to contact all investors who lost money and urged anyone who has not been reached to email ophainesconsumercontact@fca.org.uk.
The regulator also pointed to its ScamSmart page, which offers guidance on spotting and avoiding investment scams.