Armenian Passport Fraud: LA Gang Steals $1.5M from Banks

LOS ANGELES – Federal law enforcement has nabbed eight residents of the San Fernando Valley for a brazen check-kiting scheme that siphoned nearly $1.5 million from Bank of America and Wells Fargo, authorities announced today.

The alleged masterminds, who are accused of using hundreds of altered Armenian passports to open fraudulent accounts, were rounded up this morning following an extensive investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

According to a 36-count indictment unsealed today, the defendants exploited bank rules to transfer funds between their fraudulent accounts, only to withdraw them before checks could bounce. They stole or attempted to steal $1,556,336 from Bank of America, netting approximately $1.12 million, while also targeting Wells Fargo with a similar scheme that cost the bank about $370,000.

Those arrested include Ara Malkhasyan, 48, Smbat Khechumyan, 38, Sveta Khechumyan, 45, Harutyun Petrosyants, 30, Artur Harutyunyan, 34, Khachatur Chobanyan, 38, Jivan Hakhnazaryan, 49, and Arman Grigoryan, 37. A ninth defendant, Artak Okhoyan, 29, is expected to surrender tomorrow.

The defendants face conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in federal prison, as well as charges of bank fraud and aggravated identity theft.

Assistant United States Attorneys Katherine A. Rykken, Lucy B. Jennings, and Kevin Butler are prosecuting the case.