The U.S. Department of Justice (DOJ) just announced charges against a New York man who allegedly ran a multi-year Ponzi scheme that defrauded millions from investors in the U.S. and abroad.
In a statement, the Justice Department said Idin Dalpour has been charged with one count of wire fraud in connection with a scheme that lured victims into investing in his alleged hospitality and cryptocurrency trading businesses.
According to allegations in the indictment, the 39-year-old lured his victims into financing his catering business with the promise of lucrative returns starting at 42% interest per year and assurances that their money was insured.
As for the crypto trading venture, Dalpour allegedly falsely claimed that he had been purchasing cryptocurrencies wholesale and selling them to retail investors for a profit.
It is alleged that Dalpour did not actually use the investors’ funds as promised. Instead, he paid earlier investors their supposed returns with money from later investors.
The DOJ says Dalpour ultimately defrauded investors of at least $43 million over the course of the scheme, which ran approximately between 2020 and April 2024.
Says US Attorney Damian Williams:
“As alleged, Dalpour’s promises were a mirage, and he carried out a classic Ponzi scheme by paying for investors’ alleged returns with other investors’ money. Instead of using investors’ money as promised, Dalpour spent lavishly on himself, including incurring gambling losses of about $1.7 million and paying for his children’s private school tuition. Now Dalpour’s gamble has him facing federal criminal charges for his alleged crimes.
Dalpour was arrested Wednesday. If found guilty, he faces up to 20 years in prison.
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