The Financial Conduct Authority (FCA) has secured the conviction and sentencing of Daniel Pugh to 7 years and 6 months in prison for running a £1.3m Ponzi scheme through the fraudulent Imperial Investment Fund (IIF), following an FCA prosecution. The FCA is also pursuing confiscation proceedings to strip Pugh of the proceeds of crime and compensate victims. Pugh, 35, targeted 238 investors largely via Facebook adverts, offering returns of 1.4% a day, 7% a week or 350% a year and misleading investors into believing he was successfully trading and their funds were safe. The scheme netted over £1m, with Pugh receiving £96,000 that he used for personal spending, including withdrawing £18,000 in cash; he continued seeking new investors even when he knew the scheme was collapsing. The sentence comprised 7 years and 6 months for conspiracy to defraud, with concurrent terms of 24 months for two offences of carrying on a regulated activity without authorisation and 12 months for unauthorised investment promotions; Pugh was also disqualified from acting as a company director for eight years effective on release, and a further individual is wanted in connection with the offences.
Financial Conduct Authority 2025-12-05
Financial Conduct Authority secures 7 years 6 months prison sentence for £1.3m Ponzi scheme and pursues confiscation
The Financial Conduct Authority (FCA) secured a conviction against Daniel Pugh, sentencing him to 7 years and 6 months for operating a £1.3 million Ponzi scheme through the Imperial Investment Fund. Pugh misled 238 investors with false promises of high returns, netting over £1 million, and faces confiscation proceedings to recover funds. He was disqualified from being a company director for eight years, with another individual sought in connection with the offences.