A former Comox Valley resident and business owner has been accused of almost $5 million in cryptocurrency fraud by the BC Securities Commission (BCSC).
BCSC alleges that Connor Sinclair Gardiner-Ingram committed $4.6 million in fraud by convincing dozens to invest in cryptocurrency trading bots on the premise that after a specific time period the investor would receive profits.
A crypto trading bot is an automated software program that buys and sells cryptocurrency on a trader’s behalf at any hour of the day. The trader does not need to monitor the market themselves while the bot trades the digital asset according to specific conditions and settings.
The BCSC notice of hearing states that Gardiner-Ingram did not use the investors’ funds for the trading bots; instead, he used the money to purchase luxury goods, jewellery, vehicles, unrelated travel, and to give to family.
According to the notice, Gardner-Ingram worked alongside a person identified in the notice only as “R” from Australia, who he would transfer payments to, telling investors that R would put the funds toward the trading bots.
The BCSC notice said the money instead went directly to Gardiner-Ingram, or R would forward the money she received back to him.
The cryptocurrency investment company operated under the name “Alpha Alliance,” which Gardiner-Ingram said was registered in either Ontario, British Columbia, or Canada, but BCSC said no corporate entity with that name exists in those jurisdictions.
The notice of hearing also states that Gardiner-Ingram “made false or misleading statements to investigators while under oath.”
Now residing in Calgary, Gardiner-Ingram was living in Comox while the alleged fraud was taking place. Gardiner-Ingram also owned the retail shoe store Dripside Customs on Anderton Road. The store is now permanently closed for business.
“Between October 7, 2021 and February 28, 2024, Ingram received approximately $4.6 million from investors for the bots into his and Dripside’s accounts, comprised of: a) approximately $3.6 million from 43 investors through fiat, cryptocurrency and in-kind deposits; and b) approximately $1 million through cryptocurrency transfers from R on behalf of the R Group,” the notice of hearing said.
“Ingram did not use investors’ funds for bots. He used the funds for non-investor payments including transfers to his family, retail purchases including luxury goods and jewelry, vehicles and vehicle-related expenses, travel, cash withdrawals, and other expenditures,” the notice said.
BCSC also alleges that while Gardiner-Ingram made some payments to investors “to convey… that they would receive profits from their investments,” he told others he was either selling Alpha Alliance for millions of dollars and investors would receive payment from that, or his funds had been frozen by the BCSC, and he could not pay them at all.
The BCSC allegations have not been proven, and Gardiner-Ingram has the opportunity to make a statement and submit evidence before the commission if either he or his counsel attend the hearing scheduled for Sept. 15.