Devon Man Convicted Over £1.3 Million Ponzi Scheme

A man from Devon has been found guilty of defrauding hundreds of investors through an online investment scheme that promised daily returns far above market norms.

Daniel Pugh, 35, promoted the so-called Imperial Investment Fund (IIF) through social media adverts, mainly on Facebook, between March 2019 and August 2020. The fund promised returns of 1.4% a day, 7% a week, or 350% annually. According to the UK Financial Conduct Authority (FCA), the operation was a Ponzi scheme, paying early investors with money from later ones.

In total, 238 individuals were reported as victims, with losses exceeding £1.3 million. Pugh was convicted at Southwark Crown Court of conspiracy to defraud, having previously admitted to operating without proper authorisation under the Financial Services and Markets Act 2000.

"Mr Pugh deliberately defrauded unsuspecting investors," said Steve Smart, joint executive director of enforcement and market oversight at the FCA. The regulator has stated it will seek a confiscation order to recover illicit gains, while another individual connected to the scheme remains at large.

Authorities have encouraged anyone affected who has not yet been contacted to come forward. The FCA described the case as part of a wider crackdown on unlicensed schemes promoted through social media, warning retail investors about offers that "are, quite literally, too good to be true."