FBI Takes Down $43 Million Crypto and Las Vegas Hospitality Ponzi Scheme
Harvey Hunter
Last updated: May 2, 2024 07:57 EDT | 3 min read
Idin Dalpour, a resident of New York, has been apprehended by the FBI for defrauding investors of $43 million in a long-running Ponzi scheme involving a Las Vegas hospitality business and a crypto trading operation.
On May 1st, Dalpour was charged by the FBI and a New York court, as stated in a press release from the Manhattan District Attorney’s office. According to the release, Dalpour used false promises of high returns to deceive unsuspecting investors, disguising his fraudulent activities as legitimate business ventures.
This elaborate scheme lasted from 2020 to April 2024 and targeted both U.S. and international investors. Operating through a controlled entity, Dalpour enticed individuals to invest in fictitious enterprises, including a Las Vegas hospitality venture and a crypto trading enterprise.
To create a convincing facade, Dalpour enticed investors with the prospect of annual returns starting at 42%. He bolstered these claims with fake insurance and escrow arrangements, giving investors a false sense of security. U.S. Attorney Damian Williams stated that Dalpour supported these unrealistic promises with fabricated contracts, falsified bank statements, and fictitious email exchanges, all designed to deceive investors into believing in the viability of the ventures.
As part of the fraudulent Las Vegas hospitality enterprise, Dalpour falsely claimed that his “entity” had secured contracts with a Management Company and a prominent Las Vegas hotel. He also fabricated proceeds from entertainment packages for the hotel and visitors to Las Vegas-based sports stadiums.
In connection with the Ponzi scheme, Dalpour also misrepresented a crypto trading enterprise that he operated. He claimed to purchase cryptocurrency at wholesale prices and sell it at a profit to retail investors. However, the truth was that he siphoned off investor funds to pay previous investors, pocketing the difference for himself.
In total, Dalpour amassed over $43 million, which he used for personal expenses. These included gambling losses of approximately $1.7 million, over $400,000 from Art Direct, and private school tuition for his children.
The scheme unraveled in November 2023 when a group of victims confronted Dalpour, who confessed to all his fraudulent activities, including the fake ventures, falsified documents, and misused funds. Dalpour fully acknowledged the seriousness of the situation, stating, “What you already have, you have, you can put me in jail now. Like right now.”
As the adoption of cryptocurrencies increases, they have become ripe targets for scams, organized crime, and money laundering schemes. Dalpour’s arrest is just one example of the many cryptocurrency-related Ponzi schemes that U.S. authorities have successfully dismantled in the past year.
On March 15th, the U.S. Securities and Exchange Commission (SEC) took legal action against 17 individuals involved in an alleged $300 million Ponzi scheme known as CryptoFX, a cryptocurrency trading platform. Just a few days earlier, on March 18th, a New York jury convicted two individuals who promoted the now-defunct fake crypto mining and trading scheme called IcomTech.
Most recently, on April 4th, Irina Dilkinska, the former head of legal and compliance for the multibillion-dollar OneCoin fraud scheme, received a four-year jail sentence after admitting her role in laundering millions of dollars.
Cryptocurrency-related crimes have become a pressing issue worldwide, prompting jurisdictions to respond. Education plays a crucial role in protecting vulnerable individuals from falling victim to crypto scams.
FBI Assistant Director James Smith, commenting on Dalpour’s arrest, emphasized the importance of staying vigilant and informed in the fight against crypto Ponzi schemes.
Follow Us on Google News