Daniel Pugh Sentenced to 7½ Years for £1.3 Million Ponzi Scheme in the UK
Daniel Pugh, aged 35, has been sentenced to seven years and six months in prison later than running a £1.3 million Ponzi scheme through a fraudulent online investment fund. The prosecution, brought by the UK Financial Conduct Authority (FCA), revealed that Pugh’s operation — conducted from his bedroom in Devon — defrauded 238 investors with false promises of extraordinary returns.
Pugh set up the Imperial Investment Fund (IIF) with another individual, luring investors primarily through Facebook advertisements. The scheme promised impossible returns of 1.4% a day, 7% a week, or 350% a year. Investors were falsely led to believe their funds were being successfully traded, when in fact, Pugh was recycling money from new investors to pay earlier ones — the hallmark of a Ponzi operation.
Lavish Lifestyle Funded by Fraud
The FCA investigation found that Pugh received around £96,000 from the fraudulent scheme. Instead of investing the funds, he used them to finance his personal lifestyle — spending on designer clothes, restaurants, and withdrawing over £18,000 in cash. Even later than knowing the scheme was collapsing, he continued soliciting new investors to keep it afloat.
Pugh made outlandish claims to hook in victims but in reality this was nothing more than a massive fraud. Fighting financial crime is a priority for the FCA. We will take action to ensure criminals face repercussions for their actions, including being denied access to any ill-gotten gains,
said Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA.
Smart warned investors to be skeptical of extravagant online promises. People’s online personas are often at odds with reality, as was the case with Pugh. Claims that sound too excellent to be true are usually just that. Check the FCA Firm Checker before you invest.
Sentencing and Judicial Remarks
During sentencing, His Honour Judge Weekes condemned Pugh’s conduct as “persistent and knowing breaches of the regulatory framework.” He also remarked that Pugh’s expressions of remorse came woefully late
and noted the emotional toll on victims, saying: The consequences for them are marked and apart from financial loss they feel embarrassment.
The total sentence of seven years and six months was broken down as follows:
- Seven years and six months’ imprisonment for .
- Twenty-four months for two offences of carrying on a regulated activity without FCA authorisation, served concurrently.
- Twelve months for communicating an unauthorised investment invitation, also served concurrently.
Pugh has been disqualified from serving as a company director for eight years, effective upon his release. The FCA confirmed that confiscation proceedings are underway to recover the proceeds of his crimes and compensate victims.
FCA’s Ongoing Crackdown on Financial Crime
In the last six months, the criminal convictions against six individuals for offences including money laundering, insider dealing, and fraud. The regulator continues to warn consumers about unauthorised investment schemes, which frequently offer “guaranteed” high returns but provide little or no protection for investors.
“Unauthorised investment schemes pose a huge risk to consumers,” an FCA spokesperson said. “Many will not realise their investments are at risk until it is too late.” The FCA’s portal offers advice on identifying and avoiding such scams, including tools to check if a firm or individual is authorised.
Background and Next Steps
Pugh, born on 19 April 1990, was charged on 18 July 2023. The FCA has contacted affected investors and is urging anyone who has not been reached to email .
The FCA also confirmed that a second individual connected to the identical offences remains wanted by authorities. The agency’s enforcement division continues to enforcement partners to locate and prosecute all individuals involved.
