FCA secures confiscation order against Ponzi scheme fraudster

Mr Pugh, 36, is serving a 7 years and 6 months prison sentence for defrauding investors out of £1.3m. 

Run from his bedroom in Devon, Pugh used Facebook adverts to target investors and promised them wholly unrealistic returns, claiming these would be generated by trading across various markets. 

Only 19% of the funds collected from investors were traded and the scheme was, in effect, a Ponzi scheme, which was run with another individual.

At a hearing at Southwark Crown Court on 5 June 2026, Mr Pugh was ordered to pay £452,286.80. This represents the total value of the assets the court found available for recovery. The funds will be used to compensate the victims of his crimes.  

Steve Smart, executive director of enforcement and market oversight at the FCA, said:  

'Fighting financial crime is a key priority for the FCA and our message to fraudsters like Pugh is loud and clear. We will do everything in our power to deny them the profits from their crimes.'

If Mr Pugh does not pay the confiscation order within 3 months, he faces a default prison sentence of up to 4 years and 9 months. 

The confiscation proceedings form part of the FCA’s ongoing work to recover funds for victims of fraudulent investment schemes.

Notes to editors

1. Daniel Pugh’s date of birth is 19 April 1990.
2. The FCA has carried out extensive inquiries to identify all victims who are eligible for compensation. The FCA is now making a final call for any remaining victims to come forward. If anyone believes they are a victim of Daniel Pugh’s illegal activities and has not been in contact already, they should please contact the FCA with details of their dealings with Pugh as soon as possible and by 30 June 2026. The FCA is also calling for victims that have already been in touch, and confirmed they have lost money, to reach out to finalise their details.
   
   The FCA can be contacted in the following ways:
   Emailing: [email protected] 
   Calling Freephone: 0800 111 6768 or 0300 500 8082
   Writing to: Financial Conduct Authority, Unauthorised Business Department, Operation Haines Case Team, 12 Endeavour Square, London E20 1JN.
    
3. Daniel Pugh sentenced to 7 and a half years in prison for £1.3m Ponzi scheme[2].
4. Confiscation orders are made under the Proceeds of Crime Act 2002 and require offenders to repay the benefit they gained from criminal conduct or the value of their available assets, whichever is lower.  
5. The court also made a Compensation Order under the Sentencing Act 2020 and ordered that all sums paid by the Defendant towards satisfaction of his Confiscation Order are to be paid as compensation to the victims.  
6. Consumers are encouraged to use FCA Firm Checker[3] to check if firms are authorised for the investments being offered. 
7. The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA[4].