An individual has been found guilty of fraud following a prosecution by the Financial Conduct Authority (FCA).

The regulator secured a conviction against Daniel Pugh, who set up a £1.3m Ponzi scheme.

Through his fraudulent Imperial Investment Fund (IIF), Pugh took money from 238 investors he targeted largely through Facebook adverts. The FCA revealed that these investors were offered “impossibly high” returns of 1.4% a day, 7% a week or 350% a year.

Pugh has been found guilty at Southwark Crown Court of one count of conspiracy to defraud. At the start of the trial, he also pleaded guilty to carrying out unauthorised regulated activity.

Joint executive director of enforcement and market oversight at the FCA, Steve Smart, said: “Pugh deliberately defrauded unsuspecting investors. Fighting financial crime is a priority for the FCA and we are committed to holding fraudsters to account.”

The FCA confirmed it would commence confiscation proceedings to recover the proceeds from Pugh’s activity.

The regulator also revealed that a further individual remains wanted in relation to the same offences.

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