The U.S. Department of Justice (DOJ) has recently revealed the indictment of a New York resident accused of orchestrating a long-running Ponzi scheme that defrauded investors in the United States and around the world.
In an official statement, the Justice Department announced that Idin Dalpour has been charged with wire fraud in connection to a scheme that enticed victims to invest in his alleged hospitality and cryptocurrency trading ventures.
According to the indictment, the 39-year-old tricked his victims into financing his hospitality business by promising substantial returns of up to 42% interest per year and assuring them that their investments were insured. Furthermore, Dalpour allegedly falsely claimed that he purchased cryptocurrencies in bulk and sold them at a profit to individual investors.
However, it is alleged that Dalpour did not use the investors’ funds as promised. Instead, he used money from new investors to pay earlier investors their supposed returns.
The DOJ claims that Dalpour ultimately defrauded investors of at least $43 million between 2020 and April 2024.
U.S. Attorney Damian Williams stated, “Dalpour’s promises were nothing but an illusion, and he operated a classic Ponzi scheme by using new investors’ money to pay supposed returns to earlier investors. Instead of using the funds as intended, Dalpour indulged in extravagant spending for his own benefit, which included accumulating gambling losses of approximately $1.7 million and covering his children’s private school tuition. Now, Dalpour’s risky actions have led to federal criminal charges against him.”
Dalpour was arrested on Wednesday and, if convicted, could face a maximum prison sentence of 20 years.
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