Daniel Pugh has been sentenced to 7 years and 6 months in prison for running a £1.3 million Ponzi scheme, following a prosecution brought by the UK Financial Conduct Authority (FCA).
Pugh set up a Ponzi scheme with another individual that netted over £1 million. Run from his bedroom in Devon, the fraudulent Imperial Investment Fund (IIF) took money from 238 investors Pugh targeted largely through Facebook adverts. Investors were offered impossibly high returns of 1.4% a day, 7% a week or 350% a year.
Pugh received £96,000 from the scheme. He used the money to support his lifestyle, including designer clothes, restaurants and withdrawing £18,000 in cash.
The returns investors were promised did not materialise. Pugh duped investors into believing he was successfully trading and their money was safe. Even at the point he knew the scheme was collapsing, Pugh continued to try to attract more investors into the scheme.
In sentencing, His Honour Judge Weekes said there were ‘persistent and knowing breaches of the regulatory framework’ by Pugh and that any remorse for his actions came ‘woefully late’.
He added: ‘The consequences for them [the victims] are marked and apart from financial loss they feel embarrassment.’
The FCA is pursuing confiscation proceedings to deprive Pugh of the proceeds of his crimes and compensate the victims. Pugh was disqualified from being a Director of a company for 8 years, effective upon release from custody.
A further individual is wanted in relation to the same offences.
