The Federal Bureau of Investigation (FBI) arrested a New York resident on allegations of undertaking a criminal offense of defrauding investors of at least $43 million through a Ponzi scheme. The scheme involved Las Vegas hospitality ventures and cryptocurrency trading operations.

The United States Attorney for the Southern District of New York and James Smith, the Assistant Director in charge of the New York Field Office, charged Idin Dalpour on May 1 with involvement in fraudulent activities that included deceptive investment opportunities in Las Vegas hospitality ventures and crypto trading operations.

The scheme’s operation

According to the charges laid against Dalpour, he allegedly lured unsuspecting investors by convincing them of a good substantial return, which was a false enticement plan for the extensive Ponzi scheme.

The FBI indictment read, “Dalpour solicited investments through an entity under his authority, and this represents a false interest in both the hospitality and cryptocurrency fields.” 

He implemented his cryptocurrency trading strategy by purchasing cryptocurrency wholesale and selling it at a profit to retail investors. The deal tempted investors with the promise of potential annual returns starting at 42%, secured by algae insurance and escrow arrangements.

Authorities accuse Dalpour of falsifying contracts, altering bank statements, and creating fictitious emails that mislead investors about the viability of the ventures.

According to the FBI, Dalpour redirected investors’ funds to pay returns to earlier investors, cover his expenses, including excessive gambling losses, and pay for his children’s tuition at a private school.

“Today’s arrest illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others,” said James Smith, the assistant director of the FBI.

Related cases

In November 2023, Dalpour’s scheme unraveled when a group of victims confronted him. Then he confessed his actions, stating, “What you already have, you have. You can put me in jail now. Like right now.”

On March 15, the United States Securities and Exchange Commission (SEC) captured a $300 million Ponzi scheme under a cryptocurrency trading platform, CryptoFX. This crypto platform mainly targeted cryptocurrency investors from the Latino community in the United States and two other foreign countries. 

A few days later, on March 18, two people were convicted by a New York jury based on acting as promoters for the fake cryptocurrency mining and trading scheme IcomTech, which had already collapsed. 

Irina Dilkinska, the former head of legal and compliance for the multi-billion-dollar OneCoin fraud scheme, on April 4th, received a four-year jail sentence after she admitted her role in laundering millions of dollars.

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