The Department of Justice (DOJ) in the United States has recently unveiled charges against a man from New York who allegedly orchestrated a long-term Ponzi scheme that defrauded millions of dollars from investors both in the US and internationally.

In an official statement, the Justice Department disclosed that Idin Dalpour has been indicted on one count of wire fraud related to a scheme that enticed victims to invest in his supposed hospitality and cryptocurrency trading businesses.

According to the allegations outlined in the indictment, the 39-year-old enticed his victims to finance his hospitality venture by promising substantial returns of up to 42% interest per year and assuring them that their money was protected by insurance.

As for the cryptocurrency trading enterprise, Dalpour is accused of falsely asserting that he purchased digital currencies at wholesale prices and sold them at a profit to retail investors.

It is alleged that Dalpour did not utilize the investors’ funds as promised. Instead, he used the money from subsequent investors to pay earlier investors their purported returns.

The DOJ claims that Dalpour ultimately defrauded investors of a minimum of $43 million throughout the duration of the scheme, which operated from approximately 2020 to April 2024.

US Attorney Damian Williams remarked, “As alleged, Dalpour’s promises were deceptive, and he was running a classic Ponzi scheme by using funds from new investors to pay supposed returns to earlier investors. Instead of fulfilling his promises to the investors, Dalpour spent lavishly on himself, including incurring gambling losses of about $1.7 million and paying for his children’s private school education. Now, Dalpour’s risky actions have led to federal criminal charges for his alleged crimes.”

Dalpour was apprehended on Wednesday. If convicted, he could face a maximum prison sentence of 20 years.

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