The Collapse of Kourosh Company: A Multi-Million Dollar iPhone Scam in Iran

In a dramatic unfolding of events, Tehran authorities have apprehended at least one individual connected to a deceptive Ponzi-like operation that capitalized on Iran's prohibition on iPhone registrations. The illicit scheme, orchestrated by a firm named Kourosh Company, promised Iranian citizens discounted iPhones, exploiting a gap created by stringent US sanctions and an official iPhone ban which has led to soaring market prices and black-market alternatives.

The economic division of Iran's law enforcement reported a prominent member's arrest while other suspects remain at large. It was revealed that the main suspect had already fled Iran. Officials, closely collaborating with the judiciary, have seized assets related to the fraud, though they have not disclosed their value. The fraudulence emerged in response to the ban on the official registration of new iPhone models by US tech giant Apple, which expanded this year to iPhone 15 models, leading to chaotic market conditions.

Due to the official restrictions, all imported phones, including those of tourists, require registration, or they risk being recognized as contraband with merely one month of network coverage with a local SIM card. The market responded with the smuggling of iPhone 14 and 15 models, and consumers discovered temporary spoofing methods to bypass the ban, though with limited success and constant risk of disconnection.

The black market's demand for newer iPhone models surged, notably inflating the price of available models like the iPhone 13 to multiple times the international rate. An Iran-registered iPhone 13 Pro could fetch as much as approximately $2,300 in Tehran markets, a staggering hike in price when compared to the $800 tag in markets abroad. Such markups are attributed to substantial registration fees directed to the government and the fluctuation of foreign currency rates.

The nationwide ban on iPhones was rationalized as a protective measure to conserve foreign currency amid dire economic pressures in Iran, even though non-US handsets, like top Samsung models, faced no such prohibition and were readily available soon after their international release.

This economic backdrop provided fertile ground for the fraudulent operation of Kourosh Company. Claiming to be Iran's foremost phone repair business, the firm lured customers with the promise of iPhones at unparalleled prices of 200 million rials (around $360), with assurances of delivery within weeks. The venture accumulated an estimated 20 trillion rials ($35 million) in a matter of months, raising questions about its meteoric growth and the legality of its establishment given the founder's evasion of military service, a condition that typically influences business registration eligibility in Iran.

Kourosh Company's persuasive advertisement campaign, which featured a host of Iranian celebrities, from famous footballers to actors and influencers, amplified its reach and credibility. The participation of national figures like goalkeeper Alireza Beyranvand and actor Akbar Abdi, who actively prompted the public to seize the so-called opportunity, played a critical role in the mass deception. However, following the scam's exposure, these celebrities have adopted varying stances: some expressing remorse, others distancing from responsibility, and many opting for silence.

Senior police official Hossein Rahimi hinted at potential repercussions for the prominent individuals who endorsed Kourosh Company, though specifics remain undisclosed. In the meantime, victims of the scam have been advised to file police reports, as the investigation into the fraudulent transactions and the recovery of lost finances continues.

The scam's unraveling serves as a stark reminder of the vulnerabilities within Iran's economy, accentuated by heavy sanctions and the allure of lucrative scams in times of financial desperation. As the saga progresses, authorities press on with their mission to apprehend the remaining suspects and mitigate the shockwaves of this high-profile financial scandal.