FCA Secures Fraud Conviction in £1 Million Ponzi Scheme, Delivering Justice for 238 Victims

Daniel Pugh, 35, of Devon, has been convicted of fraud for orchestrating a £1 million Ponzi scheme that deceived hundreds of investors. The conviction follows a prosecution brought by the Financial Conduct Authority (FCA) on 18 July 2023, which has now launched confiscation proceedings to recover the proceeds of crime.

Operating under the guise of his fraudulent Imperial Investment Fund (IIF), Pugh lured 238 victims, primarily through Facebook advertisements, by promising unrealistic returns of up to 1.4% per day, 7% per week, or 350% annually. 

Pugh has been found guilty of one count of conspiracy to defraud. At the outset of the trial, Pugh pleaded guilty to conducting unauthorised regulated activity. 

A second individual connected to the scheme remains at large and is wanted in relation to the same offences.

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.”

The FCA is actively contacting affected investors and reiterates its warning that any person carrying out regulated financial activities in the UK must be authorised or exempt. It is also a criminal offence to communicate an invitation or inducement to invest without FCA authorisation or approval.

At the end of July, the FCA took High Court action against Concept Capital Group and related entities and individuals over a £23 million unauthorised investment scheme.