FBI Busts Las Vegas Scammer Idin Dalpour Who Stole $43M from Investors Through Ponzi Scheme

The Federal Bureau of Investigation (FBI) announced the arrest of 39-year-old Manhattan resident Idin Dalpour on Monday after he was charged with wire fraud for orchestrating an elaborate $43 million Ponzi scheme.

Idin Dalpour defrauded investors through fictitious business ventures involving a Las Vegas hospitality enterprise and cryptocurrency trading operation.

According to the indictment unsealed in federal court, Dalpour was able to keep the scheme alive for at least 4 years from 2020 (and potentially earlier) through April 2024, luring investors located in the US and abroad with false promises of lucrative returns disguised as legitimate investment opportunities in the hospitality and crypto sectors.

“Idin Dalpour told investors that they could reap huge returns by investing through him in a purported Las Vegas hospitality business and a crypto trading operation,” said US Attorney Damian Williams.

“As alleged, Dalpour’s promises were a mirage, and he was running a classic Ponzi scheme by paying investors purported returns with other investors’ money.”

Dalpour Claimed to Operate a Successful Vegas-Based Hospitality Business

Through an entity he controlled, Dalpour allegedly solicited millions from victims under the guise of investing in a Las Vegas hospitality enterprise that had agreements with large hotels and stadiums within the state.

He falsely claimed that the hotel arranged entertainment packages including food, nightlife, and sports events for visitors staying in condos and that Dalpour and his firm received a share of the proceeds.

Dalpour provided investors with fabricated contracts between his company, the management firm, and Las Vegas sports venues as well as fake email correspondence from the hotel claiming that his company was owed millions in fees.

Phony bank statements overstating his firm’s assets were also used to mislead investors.

Dalpour blatantly promised annual returns as high as 42% to those who invested in his Las Vegas hospitality venture, and he reassured investors that their money was insured and held in escrow accounts. These statements were examined by the FBI only to conclude that they were all false.

A simple Google search for Idin Dalpour leads you to the website of a company called Maxben Group, the name of the front that he used to siphon money from unwary investors. Dalpour is the only person listed in the “Our Team” section under the role of Managing Principal.

He describes himself as being directly involved with real estate transactions in various continents valued at over $250 million.

According to the website, Dalpour has a Bachelor of Science in Finance from American University and a Master of Science in Real Estate Finance and Investment from New York University.

False Crypto Trading Business

In connection with the Ponzi scheme, Dalpour further misled investors about the existence and success of a cryptocurrency trading enterprise that he allegedly operated.

Dalpour’s business model in the crypto space was buying tokens at wholesale and sell to retail investors with a markup.

This was, of course, just another big lie.

As with the Vegas charade, Dalpour enticed crypto investors with promises of lucrative annual returns and claimed that their funds were insured, none of which was true according to prosecutors.

Instead of investing the money as described, the FBI alleges that Dalpour simply used new investors’ contributions to pay fake “returns” to previous investors in classic Ponzi fashion while siphoning off millions for personal use.

Dalpour Lived the Big Life at the Expense of Investors’ Money

The indictment states that Dalpour misappropriated at least $43 million through his intricate web of lies during the four years cited in the proceeding.

This included spending approximately $1.7 million to cover his own gambling losses, another $400,000 at high-end art dealer Art Direct, and paying private school tuition for his children.

When confronted by a group of disgruntled investors about the scheme in November 2023, Dalpour reportedly confessed that he had defrauded them. “What you already have, you have, you can put me in jail now. Like right now, “ he boldly told his victims.

James Smith, Assistant Director in charge of the FBI’s New York Field Office, stated that the arrest “illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others.”

Dalpour has been charged with one count of wire fraud relating to his multi-million dollar Ponzi scheme, which carries a maximum sentence of 20 years in federal prison.

US Authorities Have Come Down Hard on Crypto Scams Lately

The alleged $43 million scam is just one of several major Ponzi schemes with crypto connections that US authorities have cracked down on over the past year as criminal activities in the crypto space continue to escalate.

In March of this year, the SEC filed charges against 17 individuals behind a $300 million Ponzi scheme called CryptoFX that targeted over 40,000 Latino investors across multiple states and foreign countries with promises of outsized, guaranteed returns on their crypto investments.

Just a few days before, a jury in New York convicted two people connected with a crypto mining and trading venture called IcomTech.

Moreover, earlier this month, a crypto micro-celebrity called Irina Dilkinska, known for promoting another fraudulent scheme called OneCoin was sentenced to four months in jail for money laundering activities associated with this crypto scam.

According to the latest Chainalysis report on Crypto Crime Trends, scamming revenues fell significantly in 2023 compared to last year. However, it still accounted for a significant portion of the $24.2 billion that was received by illicit crypto wallet addresses during the year.

Also read: What Is a Crypto Rug Pull: How It Works and How to Avoid It

Wrapping Up: What Can We Learn from

While cryptocurrency and blockchain technology have created attractive and legitimate investment opportunities, the underworld of anonymous and unregulated crypto ventures remains a fertile ground for bad actors running fraudulent operations like Dalpour’s alleged long-running Ponzi scheme.

As the crypto ecosystem expands, regulators have intensified their efforts to curb fraud and bring charges against those defrauding investors through outright scams or misrepresentations about their investment strategies and returns.

Dalpour’s arrest exemplifies this heightened scrutiny on all fronts of crypto-related investment misconduct or criminal activities.

“Cheating investors of millions severs the trust of clients and credibility of prospective advisors, both of which are vital to the success of the investment market.” said FBI Assistant Director in Charge James Smith about the impact of scams like Dalpour’s.