A federal grand jury in Memphis has indicted a 47-year-old Nolensville man for allegedly running a multi-million dollar cryptocurrency Ponzi scheme that targeted investors across the United States.
Misam M. Abidi operated the alleged scam through his investment firm, Star Credit Holdings, between 2020 and 2024 while living in Shelby County. According to the indictment announced by U.S. Attorney D. Michael Dunavant, Abidi used a series of false claims to reel in victims. These misrepresentations included promising guaranteed high rates of return, claiming he held a substantial financial reserve fund to protect investors from losses, and inflating the actual amount of capital he had under management.
Instead of trading cryptocurrency to generate legitimate profits, federal prosecutors allege Abidi sent out fabricated account statements to his clients. He then used cash from newer investors to pay out fake “returns” to older clients. Over the four-year run of the scheme, Abidi allegedly pocketed more than $1,900,000 of the invested funds to support himself and his family, while failing to report any of the business income on his federal tax returns.
The indictment also details how Abidi helped investors secure personal loans to gain access to more capital for his firm. In one instance, with at least one investor’s knowledge, Abidi allegedly falsified an identity-theft affidavit, claiming the investor’s identity had been stolen to take out the loan.
The 11-count grand jury indictment charges Abidi with three counts of wire fraud, two counts of operating an unlicensed money-transmitting business, three counts of aiding and abetting the preparation of false tax returns, and three counts of money laundering.
The statutory penalties for these charges carry severe prison time. Abidi faces up to 20 years for each count of wire fraud, 10 years for each count of money laundering, 5 years for each count of operating an unlicensed money transmitting business, and 3 years for each count of preparing false tax returns. Because these are federal charges, there is no parole.
“Ponzi schemes, cryptocurrency scams, and financial fraud can be devastating to individual investors, harmful to financial institutions, and detrimental to the U.S. Treasury,” U.S. Attorney D. Michael Dunavant said. “We commend our federal agency partners for their outstanding investigation in this egregious case. Wherever fraud occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable.”
Special Agent in Charge Donald “Trey” Eakins of the IRS Criminal Investigation’s Charlotte Field Office emphasized the broader impact of the alleged crimes.
“Schemes that rely on deception, fictitious investment statements, and the misuse of loan proceeds undermine the integrity of our financial system and erode the trust of honest taxpayers,” Eakins said. “Our special agents are committed to following the money, uncovering complex financial schemes, and bringing to justice those who abuse our tax and financial infrastructure for their own benefit.”
The case is the result of a joint investigation by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and the United States Secret Service. Assistant United States Attorney William Carey Bateman III is prosecuting the case.
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