A Calgary man who ran a $150-million Ponzi scheme has been convicted of securities fraud and ordered to pay $8.8 million in penalties and costs by the Alberta Securities Commission (ASC).
Craig Michael Thompson, 47, and his two companies, Black Box Management Corp. and Invader Management Ltd., defrauded 1,000 Canadian and American investors between 2020 and 2023, when the scam collapsed.
Thompson has no post-secondary education and no experience in finance, investments, or trading, the ASC noted in its 31-page decision, calling the fraud “among the largest Ponzi schemes in Alberta.”
One investor, identified in the ASC’s sanction decision as TF, lost more than $25 million, his entire life savings and inheritance.
The commission also found that Thompson misappropriated $767,494 of investor funds for his personal use.
Thompson and his companies admitted to two Alberta Securities Act offences — acting as a dealer without being registered and perpetrating a fraud on investors.
On Wednesday, the ASC ordered Thompson to pay $8.1 million in disgorgement, a $750,000 administrative penalty and $14,000 in costs.
The confessed conman is also permanently banned from trading.
Thompson’s lawyer declined to comment.
In an interview with CBC News, the ASC’s director of enforcement, Cynthia Campbell, said the case has been referred to the RCMP’s integrated market enforcement team for investigation.
Thompson admitted to the fraud in a statement of agreed facts and admissions filed last fall before a sanctions hearing took place in November.
The scam involved Thompson lying about being a successful day trader and convincing investors that he would use the money for day trading on the stock market.
In reality, the vast majority of funds were misappropriated and used to pay other investors their purported returns, according to the ASC.
Over time, Thompson lost more than $20 million.
According to the ASC decision, investors had no idea what their money was being used for because Thompson emailed them weekly statements showing growing account balances.
“In reality, Thompson made the numbers up,” wrote the ASC. “Investors received statements showing significant returns, when, in fact, their balance was effectively zero.”
Campbell says constant positive returns should be seen as a red flag.
“Anyone who’s engaged in day trading is going to have some wins and some losses,” said Campbell.
“The only people that can have high success rates on day trading continuously are fraudsters.”
Campbell warned of red flags that could, in the future, protect other potential investors.
Members of the public are encouraged to check the ASC’s website to confirm whether a person or company is registered to be a financial advisor.
Thompson and his companies were not registered in any fashion.
The case, said Campbell, is “a classic Ponzi scheme, dressed up as a modern trading success story.”
“This individual exploited investor trust by falsely portraying himself as a successful day trader — a tactic we’re seeing more frequently, especially as AI tools make these fabrications appear more credible”
Campbell urged anyone who is approached or involved with an investment opportunity that promises high returns with minimal risk to contact the ASC.
