World

Iran hangs mastermind behind massive investment and car-purchase fraud

Iran has executed Mohammad Reza Ghaffari, the ringleader of a sprawling investment scam that defrauded tens of thousands of people through a car-buying network and related schemes

Updated 8 months ago · Published on 07 Dec 2025 5:12PM

Iran hangs mastermind behind massive investment and car-purchase fraud
The Iranian Supreme Court upheld his death sentence for disrupting the country’s economic system - December 7, 2025

IRANIAN authorities have carried out the execution of Mohammad Reza Ghaffari, the mastermind behind a vast investment fraud that left tens of thousands of investors defrauded, the country’s judiciary announced. Ghaffari, owner of Rezaayat Khodro Taravat Novin, was hanged after Iran’s Supreme Court upheld his death sentence for “large-scale disruption of the country’s economic system” and network fraud, according to the judiciary’s Mizan Online portal.

The Times of Israel today reported that the scheme, which began in 2013 in northern Qazvin province, initially promised customers access to cars at below-market prices before expanding into real estate ventures and other investment plans.

Prosecutors accused Ghaffari and his associates of taking “vast sums from the public” and using funds from new investors to pay returns to earlier clients, a structure resembling a Ponzi scheme.

The judiciary estimates that the total sums involved would be equivalent to approximately $350 million at current exchange rates.

Only “around four percent” of clients reportedly received the cars they had purchased, while the rest were left without any compensation. A court found Ghaffari guilty of severely undermining the national economy through his operations.

The case drew widespread attention in Iran, involving more than 28,000 complainants and a total of 28 defendants.

The authorities said the execution underlines the judiciary’s determination to punish large-scale economic crimes and deter similar schemes that threaten public trust and financial stability.

Ghaffari’s network, spanning nearly a decade, illustrates the growing challenge of regulating private investment schemes and ensuring consumer protection, particularly in emerging markets where promises of high returns can rapidly escalate into nationwide scandals.

The judiciary has emphasised that the verdict and sentence were carried out in strict accordance with the law, signalling a zero-tolerance approach to economic disruption on a grand scale. - December 7, 2025

Spotlight

Malaysia

Najib raises objections to 80% of ex-1MDB CEO’s witness statement over hearsay

Malaysia

Tun Dr Mahathir, Siti Hasmah create ASEAN record

By Alfian Z.M. Tahir

Malaysia

Nanta Linggi to leave Parliament after five terms, may contest new Sarawak state seat

World

Typhoon Dolphin’s remnants swamp Beijing as China braces for more extreme rainfall

Malaysia

Anwar expected to leave hospital today after successful treatment

Malaysia

Husband and wife face death penalty for drug trafficking

Malaysia

Former Subang MP, Wong Chen joins Bersama

Malaysia

Malaysian dies while transiting in Bangkok to Japan (video)

You may be interested

World

Typhoon Dolphin’s remnants swamp Beijing as China braces for more extreme rainfall

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

World

Middle East maritime conflict escalates as Tehran refuses to reopen Strait of Hormuz

World

Thailand moves to tighten gun controls after school shooting

World

Putin threatens retaliation as Europe tightens grip on Russia’s shadow fleet

World

US appeals court lets thousands of social media addiction lawsuits against tech giants proceed

World

Hopes for peace deal fades as Trump demands Iran pay compensation

World

Colombia quake death toll hits 111 as rescue teams race to find survivors