Manitoba senior loses $2M in crypto scam

A Manitoba senior has lost his life savings to fraud, handing over $2 million to a crypto scammer who pledged big profits before running off with the money.

The man, in his 80s, fell victim to a fraudster posing as an investment company called Fargo Investor. The scammer spent about one year stealing the man’s money while feeding him falsified reports that showed he was making a profit, said Tyler Ritchie, a market surveillance investigator with the Manitoba Securities Commission.

“(The victim) described them as knowledgeable, friendly — so he completely trusted them, unfortunately,” Ritchie said by phone. “These scammers will take a lot of time to build that relationship.”

The commission issued a consumer alert on Wednesday, warning the public against dealing with Fargo Investor. In a news release, it said investigators believe there are other local victims.

The commission previously warned about Fargo Investments in a March 27 notice. Several other provincial securities commissions have flagged the company as fraudulent, including those in Quebec, Alberta, Ontario, New Brunswick and B.C.

The earliest investor alert seen by the Free Press dated back to last September, in Quebec.

“They’ve been known for some time… unfortunately, they’re still finding victims,” Ritchie said.

The Manitoba commission is tracking an increase in investment scams, in which criminals use artificial intelligence to create realistic-looking websites for false investment platforms to draw victims in. Such scams sometimes involve endorsements from celebrities or politicians, seemingly sharing their investment secrets, Ritchie said.

The commission urged the public to “adopt a critical eye” and look closely at advertisements and websites for signs of fraud, including poor English, spelling mistakes and videos or photos that “feel unsettling or slightly off.” Inconsistencies in a website’s content or email addresses that don’t match the website’s address can signal a scam, it said in a news release.

Fraudsters typically capitalize on new social trends or technology to dupe their victims. Once the money is stolen, it can be difficult for investigators to trace it back to the culprit and recover it, Ritchie said.

He warned anybody can become a victim, regardless of their age, profession, economic status and education.

“Most (victims) are embarrassed by what they’ve become involved in, they may feel ashamed about it, but it’s important that they don’t because these scammers are experienced and they have proven tactics that they use to lure people in.”

Ryan Braun, whose parents were targeted in a gift card scam last October, said it took months for them to recover.

The couple, both in their 70s, lost $32,700 to a fraudster who posed as a friend from church.

“It is not just a financial pain… it’s the emotional aspect of the scam that can really destroy people. It can destroy their lives,” he said by phone. “What (scammers) are doing, it affects so many more people than just one victim. It affects families… my parents will forever have trust issues.”

The family launched an online fundraising campaign, and were able to cover about 75 per cent of the money, Braun said, adding his parents have since connected with a financial planner who has helped them manage their investment portfolio and bounce back from the loss.

“My parents were grateful because they were really embarrassed by the whole situation, and just seeing that people were not judging them, not throwing them under the bus — I think that was more meaningful than the financial aspect of everything,” he said.

”It took the sting away.”

Investors should always check if the broker or firm they are dealing with is listed on AreTheyRegistered.ca before transferring funds, the Manitoba commission said.

It is asking anybody who has been approached by Fargo Investor, or who has information about potential fraud, to call 1-855-372-8362 or email complaintsmsc@gov.mb.ca.

tyler.searle@freepress.mb.ca