A Calgary man and his two companies will pay nearly $9 million dollars for running an extensive Ponzi scheme that bilked money from more than 1,000 investors.
The Alberta Securities Commission (ASC) sanctioned Craig Michael Thompson and two companies under his control: Black Box Management Corp. and Invader Management Ltd. this week for securities misconduct, including fraud.
Thompson admitted in a that between 2020 and 2023, he and his companies raised $150 million CAD from investors in the U.S. and Alberta, according to the ASC.
The scheme is said to have collapsed in the fall of 2023, and many investors lost substantial amounts of money, the ASC explains.
Most of the funds were collected from investors under the guise that Thompson would use the money for day trading on the stock market.
During introductory phone calls with potential investors, the commission says he lied about being a successful day trader, saying that he consistently generated great returns.
Once investors could see the success of their investment, the would spread the word, and Thompson quickly gained more clients.
According to the ASC, while Thompson used a relatively small portion of the money from investors to day trade, he was unsuccessful.
Over time, his overall losses amounted to nearly $15 million USD.
Most of the money from investors were misappropriated and used to pay other investors their purported returns.
Investors didn’t know what their money was really being used for because Thompson emailed weekly statements to each of them that always showed positive performance and growing account balances.
In reality, all of the numbers were fake.
Investors received statements that showed significant returns when in fact, their balance was effectively zero.
“This case involved 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,” said Cynthia Campbell, director of enforcement at the ASC. “Investors should be wary of anyone promising guaranteed returns from day trading, and we urge people to contact ASC inquiries if they’re approached or involved with an investment opportunity that promises high returns with minimal risk.”
The ASC panel has ordered Thompson and his companies to pay $8.1 million in disgorgement for breaking Alberta securities laws, as well as an administrative penalty of $750,000 and costs of $14,000.
He is permanently banned from trading in or purchasing any securities and must resign from all positions he has as a director or officer of any issuer.