Investors lose $150 million in Ponzi-like scheme: Alberta regulator

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Traders misplaced $150 million between them to a fraudulent funding scheme that lasted some 3½ years, an Alberta regulator mentioned.

It’s alleged Craig Michael Thompson and two firms he managed, Black Field Administration Corp. and Invader Administration Ltd., used cash from about 1,000 traders between March 2020 and September 2023 to pay different traders as a substitute of utilizing the funds for funding functions, the Alberta Securities Fee mentioned in an announcement issued Friday.

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“Within the fall of 2023, Thompson suggested traders that there had been a catastrophic loss,” the ASC mentioned. “Primarily based on the investigation, Thompson ran out of adequate funds to maintain the Ponzi-like scheme.”

Many of the defrauded people gave cash to Thompson to commerce in securities whereas a smaller quantity offered funds for funding in a enterprise concerned in bill factoring, the regulator mentioned.

The allegations haven’t been examined by a proper listening to, which is scheduled in Calgary on Could 21.

The Monetary Transactions and Studies Evaluation Centre of Canada (FINTRAC), Texas State Securities Board and United States Securities and Trade Fee (SEC) aided within the investigation, the ASC mentioned.

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