CALGARY — A Calgary man has been sanctioned by the Alberta Securities Commission following a securities fraud investigation that found the man had bilked investors of millions of dollars in one of the largest Ponzi schemes the province has seen.
Craig Michael Thompson has been ordered to pay about $8.1 million in disgorgement, along with an administrative penalty of $750,000 and costs of $14,000. Thompson is also permanently banned from trading in or purchasing any securities.
"Ponzi schemes of this size have been relatively rare in Alberta history," said Cynthia Campbell, director of enforcement at the Alberta Securities Commission.
"Thompson told people he was a successful day trader and very experienced when in fact he had no related financial or investment education training."
Campbell said an investigation was launched after a financial institution reached out to the commission expressing concerns over Ponzi-like activity in a client account.
A 31-page report from the provincial regulator released this week outlines the details behind the three-year scheme that saw $150 million taken from more than 1,000 investors in the United States and Alberta.
In one case, an unnamed Alberta client initially invested $6,000 with Thompson in March 2020. The client later received a "substantial" inheritance, and over the course of 12 months, invested an additional $25.5 million with one of Thompson's companies, understanding the funds would be used for trading.
The investigation found that the money was instead diverted, in large part, to pay other investors resulting in the loss of the man's entire life savings and inheritance.
From March 2020 to December 2023, Thompson and his two companies -- Black Box Management Corp. and Invader Management Ltd. -- misappropriated the funds to carry out a large-scale Ponzi scheme that saw the investments collected from investors cycled back to other investors as their purported returns, the investigation found.
"Such losses have devastating personal implications for investors, the market suffers because those funds are no longer available for legitimate investment, and public confidence in Alberta's capital market is undermined," the report said.
The investigation found Thompson used a small portion of investor funds for unsuccessful day trading that over time generated a cumulative net loss of nearly US$15 million.
To keep the scheme up, Thompson, who the report said is 47, would email detailed but mostly fabricated weekly reports to investors that would describe the positive performance of his trading activity through the week. The weekly emails would lead investors to believe that they were earning profits even though most of their money was being misappropriated.
Thompson was also ordered to resign from all positions he may have as a director or officer of any issuer.
Cory Wilson, Thompson's lawyer, said on Friday they are in the process of reviewing the commission's decision.
"My client took full responsibility for his conduct and was incredibly co-operative with the Alberta Securities Commission throughout the process," Wilson said in an email.
The investigation found that Thompson used more than $767,000 for his own personal benefit.
"There's an assumption that people engage in Ponzi schemes for their own financial benefit. Sometimes we see that it's also ego-driven, a sense of power. It can be a sense of grandeur for a person, the self-importance as well, may be factors that play into it," said Campbell.
The commission cautions that similar Ponzi schemes may become more prevalent through the use of technology and artificial intelligence.
Campbell encourages people to check the regulator's website to confirm whether someone is registered to provide financial advice. If they aren't, she said that should be seen as a "red flag."
She said the investigation has been forwarded to RCMP.
-- By Brittany Hobson in Winnipeg.
This report by The Canadian Press was first published Aug. 29, 2025.
The Canadian Press
