- A $43 million Ponzi Scheme has been busted by the FBI
- New Yorker Idin Dalpour ran two schemes where he used investors’ money to fund his lavish lifestyle
- Dalpour spent almost $2 million on gambling
A 39-year-old New York resident was this week charged with wire fraud for allegedly orchestrating a sophisticated Ponzi scheme spanning four years. Idin Dalpour is alleged to have operated the scheme from 2020 to April 2024, targeting investors both domestically and internationally and reportedly defrauded victims of at least $43 million. The FBI says Dalpour solicited investments through an entity he controlled, promising returns through two purported ventures: a Las Vegas hospitality enterprise and a cryptocurrency trading operation.
Money Went on Gambling and Art
In an announcement released on Wednesday, the FBI alleged that Dalpour misappropriated investors’ funds, using them to pay earlier investors and fund personal expenses, including substantial gambling losses amounting to approximately $1.7 million and expenses from Art Direct exceeding $400,000.
Under the false pretense of the Las Vegas hospitality venture, Dalpour is also said to have fabricated contracts with management companies and hotels, creating an illusion of legitimacy. Similarly, he misrepresented a cryptocurrency trading scheme, falsely assuring investors of substantial profits and the security of their investments, a typical ruse of those running a crypto investment scam.
Dalpour Blamed Server Hacks
When confronted by victims in November 2023, Dalpour purportedly confessed to fabricating documents and deceiving investors, acknowledging his culpability in the scheme. Despite earlier claims that investors’ funds were secure and insured, investigations revealed that Dalpour’s activities were fraudulent; no evidence was found of funds being held in escrow or insured as promised, and plenty of evidence was uncovered that he enjoyed the trappings of his newfound wealth for himself.
Dalpour also lied to investors when they sought to recoup their money, telling them that his company’s funds were temporarily frozen due to a hack on the hotel’s servers (paging Craig Wright) and that the Nevada-based bank allegedly holding its funds would not release the proceeds. In fact, Dalpour’s fictional entity did not even have a bank account with the Nevada-based bank.
If convicted, Dalpour faces a maximum sentence of 20 years in prison for wire fraud.
