Daniel Pugh has been found guilty of fraud, following a prosecution by the FCA.
Devon-based Pugh set up a Ponzi scheme that netted over £1m. Through his fraudulent Imperial Investment Fund (IIF), 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.
During a trial at Southwark Crown Court, Pugh was found guilty 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 and carries a maximum sentence of two years imprisonment.
Conspiracy to defraud carries a maximum sentence of 10 years of imprisonment.
A further individual remains wanted in relation to the same offences.
The FCA will now commence confiscation proceedings in order to recover the proceeds of 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."
