Latest news Car fraud worth millions - manager executed in Iran
A manager has been executed in Iran for a multi-million car fraud involving tens of thousands of victims. The Misan news agency, which is affiliated with the Iranian judiciary, reported that the death sentence was carried out against the manager in the morning.
07.12.2025, 08:57
SDA
The background to this is a massive scandal that began in 2013. At the time, the Iranian company Resajat Chodro Tarawat Nowin lured tens of thousands of buyers with cheap cars, but hardly ever delivered them. Instead, the company paid compensation from the money of new customers - a classic Ponzi scheme. In total, the company is said to have defrauded its customers of the equivalent of around 57 million euros. In view of high inflation and currency depreciation, the actual loss is likely to be significantly higher.
According to a report by Misan, more than 28,000 people lost their savings. The judiciary confiscated dozens of luxury vehicles and other assets. Company boss Mohammed Ghafari was arrested almost two years ago and sentenced to death after a month-long trial.
Many Iranians save up for a car for years
Cars are significantly more expensive in Iran than in Germany. One of the main reasons for this is the pronounced protectionism: imports are banned with a few exceptions. Instead, the government protects the domestic industry and its hundreds of thousands of jobs. Petrol, on the other hand, is cheap in the oil-rich country and costs the equivalent of just a few cents per liter.
Small cars and entry-level models are extremely expensive for the majority of the population at the equivalent of a good 10,000 euros with an average monthly wage of just a few hundred euros. Used cars hardly lose any value and are considered an investment. Many Iranians save up for years to buy a car, which is often seen as a status symbol.
