14 people were arrested on suspicion of engaging in a one-year program for fraudulently obtaining more than $25 million in Covid-19-19-susief Funds and government-backed small business loans.
During Wednesday’s arrest, law enforcement seized about $20,000 in cash, two currency computers, paper and pen, multiple cell phones, laptops, two loaded semi-automatic 9mm pistols and ammunition boxes.
“This transnational criminal network has almost been successful in trying to deceive millions of dollars in the government,” John Pasciucco, acting special agent for the Homeland Security Investigation, said in a statement.
He added that the agency “is continuing to identify these criminal groups that want to profit from the pandemic and will use all available resources to prosecute crimes or remove them from the country.”
A total of 18 people were charged with allegedly related to so-called schemes, including conspiracy to deceive the government regarding claims; making false, virtual or fraudulent claims; wire fraud and attempted wire fraud; bank fraud and attempted bank fraud; conspiracy to launder money, money laundering, monetary instruments, property obtained from designated illegal activities, and structuring financial transactions to evade reporting requirements, according to federal prosecutors.
Prosecutors said four of the 18 accused had not been arrested, believed to be in Armenia.
Prosecutors accused Vahe Margaryan, 42, of Tujunga, of Vahe Margaryan, by instructing Sham Corporations owners to open bank accounts and create fake documents to support loan applications in support of other Sham Corporations.
Authorities said the plan allegedly began in the 2018 pandemic and continued until January.
In a possible cause statement filed in the federal court, investigators wrote that the defendant laundered money through multiple bank accounts and eventually used the cash to personal expenses.
In one example, prosecutors called Margaryan the name also known as William McGrayan. In May 2019, Margaryan suggested changing the company’s name to Mobile Auto Repair, Inc. and instruct FN to open a bank account for the business with its sole signatories.
FN told investigators he thought it was suspicious and questioned whether it was legal. Investigators wrote in a possible cause statement that Margaria assured him that “it is necessary to help qualify for the loan and that it is legal.” FN told authorities that they had no intention of operating a car repair business.
Authorities said Margarian directed FN to deposit the check into the company’s account and then transfer it to other accounts and seek bank loans, as well as salary protection loans and economic injury disaster loans during the pandemic.
FN wrote in a statement of possible causes that Margaria’s behavior was “terrible” and “unrelated”.
“FN is becoming more and more afraid [Margaryan] As [Margaryan’s] When FN questioned, his tone became more warlike [Margaryan] It is legal about what they are doing,” the agent wrote.
Also charged in the scheme were Sarkis Sarkisyan, Aksel Markaryan, Ashot Bejanyan, Jack Aydinian, Taron Musayelyan, Hovannes Hovannisyan, Mery Babayan, Anahit Sahakyan, Felix Parker, Rudik Yengibaryan, Yohan Vachyan, Khachatur Nikoghosyan and Boris Sahakyan, court records show.
The other four defendants believed to be overseas have not been named publicly.
