The FBI has arrested a New York resident, Idin Dalpour, for masterminding a complex Ponzi scheme that defrauded investors out of at least $43 million. The scheme involved deceptive investment opportunities in a Las Vegas hospitality business and a cryptocurrency trading operation, according to federal authorities.
Details of the Scheme and Arrest
On May 1, Damian Williams, the United States Attorney for the Southern District of New York, alongside James Smith, Assistant Director in Charge of the FBI's New York Field Office, announced charges against Dalpour. He is accused of luring investors with promises of high returns from investments in the hospitality sector and cryptocurrency markets. Investors were reportedly promised annual returns starting at 42%, with the safety of their investments purportedly guaranteed through insurance and escrow arrangements.
The Mechanics of the Fraud
Dalpour allegedly solicited investments through a controlled entity, falsely claiming successful operations in both the hospitality and cryptocurrency sectors. He is said to have misled investors about purchasing crypto at wholesale prices and selling it at a profit to retail buyers. To maintain the illusion of a legitimate business, Dalpour is accused of fabricating contracts, falsifying bank statements, and creating fictitious email correspondence.
Misuse of Investor Funds
According to the FBI, the investor funds were not used as promised but were instead diverted to pay returns to earlier investors, cover Dalpour's personal expensesâincluding substantial gambling lossesâand pay for his children's private school tuition.
Confrontation and Confession
The scheme began to unravel in November 2023 when a group of victims confronted Dalpour. During this confrontation, Dalpour reportedly confessed to the fraudulent nature of his operations, stating, "What you already have, you have, you can put me in jail now. Like right now."
Broader Context of Crypto-Related Fraud
This arrest is part of a series of actions by U.S. officials targeting Ponzi schemes related to cryptocurrencies. Recent cases include the March 15 SEC bust of a $300 million Ponzi scheme operating under the guise of a crypto trading platform called CryptoFX, and the April 4 sentencing of Irina Dilkinska, former head of legal and compliance for the OneCoin fraud scheme, to four years in prison for money laundering.
James Smith of the FBI emphasized the agency's commitment to economic justice, stating, "Todayâs arrest illustrates the FBIâs dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others."
These ongoing efforts underscore the regulatory challenges and risks associated with investing in the burgeoning cryptocurrency market.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.â