The Financial Conduct Authority (FCA) announced Friday that it has secured the conviction of Daniel Pugh, 35, of Devon, for orchestrating a £1.3 million Ponzi scheme.
FCA Secures Conviction in £1.3 Million Ponzi Scheme
Pugh was found guilty at Southwark Crown Court of one count of conspiracy to defraud.
He had earlier pleaded guilty to carrying out unauthorised regulated activity and breaching sections 19 and 21 of the Financial Services and Markets Act 2000.
Through his fraudulent Imperial Investment Fund (IIF), Pugh is said to have targeted 238 investors, largely via Facebook adverts, promising returns of 1.4% a day, 7% a week or 350% a year, rates the FCA described as “impossibly high.”
The scheme ultimately netted more than £1 million.
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 has confirmed that confiscation proceedings will begin to recover the proceeds of the crime. A further individual remains wanted in connection with the same offences.
The regulator added that it has contacted affected investors, urging anyone who has not yet heard from the FCA to get in touch.
It also reiterated its ScamSmart advice, warning the public to be vigilant against high-return investment schemes.
