A Devon man who set up a Ponzi scheme that netted £1.3m has been found guilty of fraud, following a prosecution by the FCA.

Daniel Pugh, 35, could face a maximum sentence for conspiracy to defraud of 10 years of imprisonment.

Through his fraudulent Imperial Investment Fund, Mr Pugh took money from 238 investors he targeted largely through Facebook adverts.

They were offered 'impossibly high' returns of 1.4% a day, 7% a week or 350% a year.

The FCA said it will begin confiscation proceedings in order to recover the proceeds of the crime.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, 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.”

Mr Pugh was found guilty at Southwark Crown Court yesterday of one count of conspiracy to defraud. At the start of the trial he pleaded guilty to carrying out unauthorised regulated activity which breached sections 19 and 21 of the Financial Services and Markets Act 2000.

A further individual remains wanted in relation to the same offences.

The FCA said it has attempted to contact investors who lost out. Anyone who was scammed by IIF and has not heard from the FCA should call or email This email address is being protected from spambots. You need JavaScript enabled to view it..

In June a fraudster who fled to avoid a 14 year jail term has been ordered to repay £64m from the proceeds of his Ponzi scheme or have 14 years added to his sentence.

In January the FCA won a Confiscation Order of £5,963,376 against a fake trader, now in jail, who lived an “extravagant lifestyle” on the proceeds of a Ponzi scheme which cheated 240 investors out of £19m.