Iran hangs the ringleader of a massive fraud scheme that defrauded tens of thousands of people, after he failed to repay victims despite court warnings.
TEHRAN: Iran executed the ringleader of a vast investment scam on Sunday after the Supreme Court upheld his death sentence.
The judiciary’s Mizan Online portal said Mohammad Reza Ghaffari was hanged for “large-scale disruption of the country’s economic system” and network fraud.
Ghaffari owned the Rezaayat Khodro Taravat Novin company, which operated the scheme launched in 2013.
It promised cars at below-market prices and later expanded into real estate and investment plans.
Prosecutors said Ghaffari and associates took “vast sums from the public” and used new deposits to pay returns to early clients.
The judiciary said the scam involved sums equivalent to around $350 million at current exchange rates.
Only “around 4%” of customers received a vehicle, according to the court.
The case drew more than 28,000 complainants and involved 28 defendants.
A court found Ghaffari guilty of undermining the national economy.
The judiciary said all necessary opportunities were given to the defendants to repay victims.
Mizan reported that Ghaffari had claimed during trial he was ready to reimburse investors, which could have spared him execution.
But despite “several warnings and deadlines” after the Supreme Court confirmed the sentence in August, he failed to settle his obligations.
Judicial officials said the scam caused “severe financial and psychological harm” to victims.
This included stress-related illnesses and family breakdowns.
Iran applies the death penalty for major economic crimes as well as offences like murder and rape.
It is the world’s second most prolific user of capital punishment after China, according to rights groups.
