Mr Pugh, 33, has been charged with one count of fraud and three offences of breaching the Financial Services and Markets Act 2000. 

The FCA alleges that between 1 March 2019 and 31 August 2020, Mr Pugh defrauded investors out of approximately £1.3m through an unauthorised investment scheme, known as the Imperial Investments Fund. 

The regulator claims Mr Pugh conspired to defraud by making a number of misrepresentations regarding the interest rates offered, trading activity and profits from the scheme to those willing to invest in the scheme.

It also alleges that he carried out regulated activity in the UK (accepting deposits, operating a collective investment scheme and inducing people to invest) when he was not authorised by the FCA, or an exempt person. 

Mr Pugh was charged at Westminster Magistrates Court yesterday.

The case was sent to Southwark Crown Court, where the defendant will appear on 15 August for a plea and trial preparation hearing. 

Conspiracy to defraud is an offence under common law with a maximum sentence on conviction of 10 years’ imprisonment.   

Mr Pugh operated his unauthorised scheme from an address in Tonbridge.

The FCA first warned about the unauthorised scheme in August 2020.