Iran executed Mohammad Reza Ghaffari, the ringleader of a massive investment scam that defrauded tens of thousands of people, the judiciary announced Sunday. Ghaffari, owner of Rezaayat Khodro Taravat Novin, was hanged after the Supreme Court upheld his death sentence for “large-scale disruption of the country’s economic system” and network fraud.
The scheme, launched in 2013 in Qazvin province, initially promised cars at below-market prices and later expanded into real estate and investment plans. Prosecutors said Ghaffari and his associates took vast sums from the public, using new deposits to pay early clients. Only about four percent of customers received a vehicle, with total losses estimated at $350 million.
The case involved 28 defendants and drew complaints from more than 28,000 victims. Despite court orders and warnings to repay investors, Ghaffari failed to meet his obligations, prompting the execution. Judicial officials said the scam caused severe financial and psychological harm, including stress-related illnesses and family breakdowns.
Iran enforces the death penalty not only for murder and rape but also for major economic crimes, making it the world’s second-largest user of capital punishment, after China.
