FCA Wins Conviction in £1.3 Million Ponzi Scheme Case

The Financial Conduct Authority (FCA) has secured the conviction of Daniel Pugh, 35, of Devon, for orchestrating a fraudulent £1.3 million Ponzi scheme through his company, the Imperial Investment Fund (IIF).

Pugh targeted 238 victims, many approached via Facebook adverts, with promises of implausible investment returns of up to 1.4% a day, 7% a week, or 350% annually. The scheme ran without FCA authorisation, in breach of sections 19 and 21 of the Financial Services and Markets Act 2000 (FSMA).

At the start of proceedings, Pugh admitted to carrying out unauthorised regulated activity and issuing unapproved investment communications. Following trial at Southwark Crown Court, he was found guilty of conspiracy to defraud, a common law offence carrying a maximum penalty of ten years’ imprisonment.

Confiscation proceedings are now underway to recover the proceeds of the 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.

A further individual remains wanted in connection with the offences.

Read the press release here.