Devon man who promised eye-watering daily returns through an online investment scheme has been found guilty of fraud after conning hundreds of investors out of more than £1.3 million.
Daniel Pugh, 35, used social media adverts—primarily on Facebook—to promote his so-called Imperial Investment Fund (IIF), which promised returns of 1.4% a day, 7% a week, or a staggering 350% a year. The fund, which operated between March 2019 and August 2020, turned out to be a classic Ponzi scheme, with early participants paid from the deposits of new investors.
In total, 238 people fell victim to the scheme, according to the UK Financial Conduct Authority (FCA), which brought the case against Pugh.
“Mr Pugh deliberately defrauded unsuspecting investors,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA. “Fighting financial crime is a priority for the FCA and we are committed to holding fraudsters to account.”
Pugh was convicted at Southwark Crown Court on one count of conspiracy to defraud. He previously pleaded guilty to carrying out unauthorised regulated activity, in breach of sections 19 and 21 of the Financial Services and Markets Act 2000. These provisions prohibit individuals from promoting or operating investment schemes without FCA authorisation.
The regulator said it would now seek a confiscation order to recover the proceeds of crime. A second individual linked to the scheme remains wanted by authorities.
Pugh, who gave his date of birth as 19 April 1990, offered no comment during the sentencing. The FCA asked anyone who believes they were defrauded by IIF and has not yet been contacted to come forward.
The case is the latest in a string of enforcement actions by the FCA targeting fraudulent schemes promoted through social media — a trend regulators say is growing as unlicensed operators exploit platforms to reach retail investors with promises that are, quite literally, too good to be true.
