An individual has been found guilty of fraud after running a £1m Ponzi scheme, following a prosecution by the Financial Conduct Authority (FCA).
Daniel Pugh, 35, of Devon, operated the fraudulent Imperial Investment Fund, taking money from 238 investors, many of whom were recruited via Facebook adverts.
He promised implausible returns of 1.4% a day, 7% a week or 350% a year.
The FCA said it will begin confiscation proceedings to recover the proceeds of crime.
Steve Smart, the FCA’s joint executive director of enforcement and market oversight, said: “Mr Pugh deliberately defrauded unsuspecting investors.
“Fighting financial crime is a priority for the FCA and we are committed to holding fraudsters to account.”
Pugh was found guilty of conspiracy to defraud and had earlier pleaded guilty to carrying out unauthorised regulated activity in breach of the Financial Services and Markets Act 2000.
Another suspect remains wanted in connection with the offences.
Last year, nearly 20,000 financial promotions were withdrawn or amended following intervention by the FCA.
This was almost double the number from the previous year.
