Orange County, CA – A sophisticated mail fraud and false statement scheme targeting the Environmental Protection Agency (EPA) and Customs Service was uncovered in 1985, leading to the convictions of three men connected to an automobile import and emissions testing facility. The operation, spanning from mid-1981 to 1984, involved the deliberate falsification of emissions data and the importation of vehicles failing to meet Clean Air Act standards.
The investigation culminated in a 35-count felony indictment in May 1985 against Albert Mardikian, then Chief Operations Officer, charging him with 17 counts of mail fraud (18 U.S.C. §1341) and 18 counts of false statements (18 U.S.C. §1001). Garo Mardikian, the plant manager, faced 10 counts of mail fraud. Authorities allege the pair systematically submitted fraudulent documentation to both the EPA and Customs, allowing non-compliant vehicles to be registered and sold to the public.
The case quickly progressed as Albert Mardikian entered a guilty plea to nine counts of false statements and one count of mail fraud in August 1985. Garo Mardikian simultaneously pled guilty to three counts of mail fraud. Shortly thereafter, Agob, an employee of Albert Mardikian Engineering, Inc., was charged with one count of false statements, waived indictment, and also entered a guilty plea.
Sentencing, handed down in November 1985, reflected the severity of the offenses. Agob received a 60-month sentence, with all but 20 days suspended for weekend incarceration, coupled with 60 months of probation and a substantial 2,500 hours of community service. Albert Mardikian faced a 60-month sentence, with six months to be served, followed by 60 months probation, 2080 hours of community service dedicated to job skills training for underprivileged individuals, a requirement to place at least 20 people into jobs annually, and restitution to injured parties. Garo Mardikian received a 60-month sentence, with 30 days to be served on weekends, 60 months of probation, and a five-year community service commitment.
The case highlights a deliberate attempt to circumvent environmental regulations for financial gain. While the specific financial impact on injured parties isn’t detailed in available records, the scheme demonstrably undermined the integrity of the vehicle emissions testing process and potentially exposed consumers to vehicles exceeding legal pollution limits. The EPA’s criminal enforcement efforts, in conjunction with the Customs Service, were crucial in bringing this fraudulent operation to light.
Key Facts
- Defendants: Albert Mardikian, Garo Mardikian, Agob
- 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 (up to 2,500 hours), job placement requirements, and restitution.
- Scheme: Falsification of emissions data and importation of non-compliant vehicles to defraud the EPA and Customs Service.
GrimyTimes will continue to follow this case and provide updates as they become available.
Source: EPA ECHO Enforcement Case Database
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