FCA Secures 7.5-Year Sentence Against £1.3M Ponzi Scheme Operator

Daniel Pugh, 35, has been sentenced to seven years and six months in prison for operating a £1.3 million Ponzi scheme, following a prosecution by the Financial Conduct Authority (FCA) in July and his conviction in August.

Pugh ran the fraudulent Imperial Investment Fund (IIF) from his bedroom in Devon, targeting 238 investors—primarily through Facebook ads—with false promises of impossibly high returns: 1.4% daily, 7% weekly, or 350% annually. The scheme ultimately netted over £1 million.

He personally received £96,000, which he spent on designer clothing, dining, and cash withdrawals totalling £18,000. Despite knowing the scheme was collapsing, Pugh continued soliciting new investors, falsely claiming successful trades and secure funds.

In sentencing, Judge Weekes cited Pugh’s “persistent and knowing breaches of the regulatory framework,” adding that any remorse came “woefully late.”

Steve Smart, executive director of enforcement and market oversight at the FCA, warned: “People’s online personas are often at odds with reality, as was the case with Pugh. Claims that sound too good to be true are usually just that.”

The FCA is pursuing confiscation proceedings to recover illicit gains and compensate victims. Pugh has also been disqualified from serving as a company director for eight years, effective upon release. A second suspect remains at large.

Over the past six months, the FCA has secured convictions against six individuals for financial crimes, including John Burford, the sole director of Financial Trading Strategies Limited, who pleaded guilty in a separate £1 million investment fraud case.

BrokersView Reminds You

Unauthorised investment schemes offer little to no protection. Always conduct thorough due diligence before investing. To verify broker registration status, visit BrokersView. Don’t be swayed by promises of high returns.