Hailing from Manhattan, Idin Dalpour was arrested by the FBI for allegedly orchestrating a Ponzi scheme that involved a crypto trading operation and a fictitious hospitality business based in Las Vegas.
James Smith, the FBI Assistant Director in Charge, said that Idin Dalpour had been running the Ponzi scheme worth $43 million for four years.
The scheme
He revealed that the man had made false promises of high returns to entice victims to invest in his purported crypto trading and hospitality enterprises.
He had used the funds for personal expenditures and to satisfy other debts. Maxben Group is the name of Dalpour’s company.
It mentions entertainment venues, hospitality, professional sports teams, and real estate, but does not make any mention of crypto trading.
The FBI disclosed that the crypto trading scheme had been operated through a separate business. The prosecutors said in the indictment that Dalpour had made false representations to investors.
He had claimed to purchase crypto at wholesale and then sell the crypto in question to retail investors for a profit.
Similar to the hospitality enterprise in Las Vegas, he promised lucrative annual returns to investors and claimed that all funds were insured. However, these were just false claims.
The charges
The Manhattan resident also covered his gambling losses with investors’ funds of about $1.7 million. He also paid private school tuition of his kids and spent money on Art Direct of about $400,000.
The 39-year old has been charged with wire fraud and if convicted, he could face a prison sentence of about 20 years.
According to the indictment, Dalpour had been luring investors into his scheme from 2020 to 2024 and had fabricated false financial statements and contracts.
This included claims of partnerships with sports stadiums and a hotel in Las Vegas. The FBI said that Dalpour admitted to the deception when he was confronted by investors.
The background
It is not the first time that Dalpour has had to face legal issues related to his business, Maxben Group. A complaint had been filed against him last month by two lenders for breach of contract.
They said that he had borrowed $2.5 million last year and had not repaid the amount. A lawsuit had also been filed in September 2023 by three investors.
They said that Dalpour had defrauded them and had breached contracts after they had invested a total of $5 million in his firm over the course of a few years.
The lawsuit filed by the investors called it a profound abuse of trust. He had first developed a business connection with the three men and built friendships with them.
He had worked on building trust with Mr. Schroeder, Mr. Russ, and Mr. Saleem, which had prompted them to invest $5 million into his businesses.
The FBI Director said in the press release that the credibility of prospective advisors and the trust of clients is impacted when investors are cheated out of millions and this also affects the investment market.