A Calgary resident faces penalties from the Alberta Securities Commission for orchestrating a massive Ponzi scheme that defrauded investors of millions of dollars. Craig Michael Thompson has been ordered to repay $8.1 million in ill-gotten gains, as well as a $750,000 penalty and $14,000 in costs. Additionally, Thompson is permanently banned from engaging in securities trading activities.
Alberta Securities Commission’s director of enforcement, Cynthia Campbell, described the Ponzi scheme as one of the largest in the province’s history. Thompson falsely portrayed himself as a successful day trader to investors, despite lacking any relevant financial or investment education.
The scheme came to light when a financial institution raised concerns about Ponzi-like activities in a client account, prompting an investigation. The probe revealed a three-year operation that siphoned $150 million from over 1,000 investors in the United States and Alberta.
One victim initially invested $6,000 with Thompson in 2020, later pouring an additional $25.5 million into Thompson’s companies under the guise of trading activities. Instead, funds were redirected to other investors, resulting in the loss of the victim’s life savings and inheritance.
Thompson and his companies, Black Box Management Corp. and Invader Management Ltd., perpetuated the Ponzi scheme from 2020 to 2023. Misappropriated funds were circulated among investors as fake returns, while a small portion was used for unsuccessful day trading, leading to significant losses.
Thompson maintained the facade by sending fabricated weekly reports to investors, painting a rosy picture of trading performance and returns. The scheme was propped up by deceit and misappropriation, ultimately causing devastating financial losses for many victims.
In response to the investigation, Thompson was directed to step down from any directorial or officer roles within any entity. His lawyer, Cory Wilson, stated that they are reviewing the commission’s ruling and acknowledged Thompson’s cooperation during the process.
Beyond personal gain, Campbell highlighted ego, power, and a sense of grandeur as potential motivators for Ponzi scheme operators. The Alberta Securities Commission warns of the increasing risk of such schemes exploiting technology, urging individuals to verify financial advisors’ registrations on the regulator’s website.