Orange County authorities brought down a sophisticated mail fraud and false statements scheme in 1985, exposing widespread violations of federal emissions standards by an automobile import and testing facility. The investigation, which spanned several years, revealed a deliberate effort to circumvent Clean Air Act regulations and deceive both the Environmental Protection Agency (EPA) and the Customs Service.
The core of the operation involved submitting falsified emissions test data for imported vehicles. From mid-1981 until 1984, Albert Mardikian, Chief Operations Officer of Albert Mardikian Engineering, Inc., and Garo Mardikian, plant manager, allegedly orchestrated a scheme to approve vehicles that did not meet U.S. emissions requirements. This allowed non-compliant vehicles to be illegally imported and sold to unsuspecting consumers.
The case began to unravel in May 1985 with a 35-count felony indictment. Albert Mardikian faced 17 counts of mail fraud (18 U.S.C. 1341) and 18 counts of making false statements (18 U.S.C. 1001). Garo Mardikian was charged with 10 counts of mail fraud. The government’s presentation of evidence quickly led to guilty pleas. In August 1985, Albert Mardikian admitted guilt to nine counts of false statements and one count of mail fraud, while Garo Mardikian pleaded guilty to three counts of mail fraud.
Expanding the Net
The investigation didn’t stop with the Mardikians. Agob, an employee of Albert Mardikian Engineering, was subsequently charged in August 1985 with one count of making false statements (18 U.S.C. 1001). Agob waived indictment and promptly entered a guilty plea, indicating a willingness to cooperate with authorities. His involvement suggested a broader pattern of deception within the company.
Sentencing & Penalties
Sentencing took place in November 1985. Agob received a 60-month sentence, with all but 20 days suspended to be served on weekends, along with 60 months of probation and a substantial 2,500 hours of community service. Albert Mardikian faced a 60-month sentence, with six months suspended, 60 months of probation, and a unique requirement to dedicate over 2,080 hours to teaching job-seeking skills to underprivileged individuals, and place at least 20 people into jobs per year. He was also ordered to pay restitution to injured parties. Garo Mardikian received a 60-month sentence with 30 days suspended to be served on weekends, 60 months probation, and community service over a five-year period. The sentences reflected the seriousness of the offenses and the court’s desire for both punishment and rehabilitation.
Key Facts
- Defendants: Albert Mardikian, Garo Mardikian, Agob
- Crime: Mail Fraud & False Statements
- Location: Orange County, California
- Years Active: 1981 – 1984
- Statutes Violated: 18 U.S.C. 1341 (Mail Fraud), 18 U.S.C. 1001 (False Statements)
- Penalties: Sentences ranged from 60 months incarceration (mostly suspended) to probation, community service, and restitution.
- Scheme: Falsifying emissions test data for imported vehicles to bypass Clean Air Act regulations.
The case serves as a stark reminder of the financial and environmental consequences of fraudulent practices within the automotive industry. The EPA and Customs Service continue to vigorously pursue individuals and companies attempting to circumvent environmental regulations, ensuring compliance and protecting public health.
Source: EPA ECHO Enforcement Case Database
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