Iran executes man convicted of massive fraud

11:00

By: Sahili Aya

Iran executes man convicted of massive fraud

Iranian authorities announced on Sunday the execution of Mohammad Reza Ghaffari, a businessman convicted of a large-scale fraud affecting tens of thousands of people. Ghaffari, owner of the company Rezaayat Khodro Taravat Novin, was sentenced after the Iranian Supreme Court confirmed in August his conviction for “disruption of the country’s economic system on a large scale,” according to the judicial website Mizan.

The fraud, which began in 2013 in Qazvin province in northern Iran, revolved around promises to sell cars at low prices and invest in real estate. Ghaffari and his associates were accused of embezzling approximately $350 million through a Ponzi scheme, which paid earlier investors using funds from new entrants, affecting more than 28,000 people. Only 4% of the clients reportedly received the vehicles they were promised.

During his trial, Ghaffari had pledged to repay the victims but failed to do so despite multiple warnings. Authorities noted that the scam caused “serious financial and psychological consequences” for those affected.

In Iran, the death penalty is usually applied for murders and sexual assaults, but it is also used for serious economic crimes and espionage. The Islamic Republic, which executes most condemned individuals by hanging, ranks second in the world for the number of executions after China, according to human rights groups including Amnesty International.