SAN DIEGO, CA – Three men are trading the California sun for federal prison cells after a years-long nationwide scheme to steal financial data from unsuspecting consumers. Davit Simonyan, his brother Vahram Simonyan, and Arsen Galstyan were sentenced today in federal court for a conspiracy that stretched from 2017 to 2020, victimizing people across the country and netting the crew over $1 million.
The operation centered around “skimming” – the installation of devices on ATMs and gas pumps to capture credit and debit card information. Once obtained, the trio manufactured counterfeit cards and used them to purchase postal money orders and drain victims’ accounts. The fraud wasn’t confined to Southern California; consumers in New York, Illinois, Missouri, and Oklahoma also felt the pinch. The total losses, both realized and attempted, climbed to at least $1.2 million, according to court documents.
Davit Simonyan received the longest sentence: 46 months in prison, along with forfeiture of $642,347.16 and restitution of $116,408.00. His brother, Vahram Simonyan, will spend 33 months behind bars, forfeiting $642,053.31 and paying $116,408.00 in restitution. Arsen Galstyan, convicted of fraud, received an 18-month sentence and is responsible for $47,796.00 in forfeiture and restitution. U.S. District Judge Michael M. Anello, during sentencing, bluntly stated this was a “huge criminal enterprise, nationwide.”
But the fraud didn’t stop at stolen card data. Davit Simonyan also orchestrated a phony car accident as part of an insurance fraud scheme. He planned a collision involving vehicles insured by himself and codefendants, including Galstyan. The damaged vehicles were then repaired at a collision shop owned by an unindicted co-conspirator, who allegedly kicked back funds to the Simonyan brothers – a blatant attempt to launder the ill-gotten gains. Simonyan admitted the staged crash carried the risk of serious bodily injury.
Federal authorities are highlighting the scale of the operation and the dedication to bringing these types of criminals to justice. “Identity thieves may believe that they can make easy money by stealing from unwitting victims in our community,” said U.S. Attorney Randy Grossman. “But this office will ensure that those defrauding the public will be brought to justice.” The U.S. Attorney’s Office, the U.S. Secret Service, and the U.S. Postal Inspection Service all collaborated on the investigation.
Timothy Scott, acting Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office, emphasized the agency’s commitment to combating skimming operations. “We will continue to use all investigative means necessary to bring to justice those perpetrating these crimes,” Scott stated. Seven individuals have now admitted to participating in the combined fraud and money laundering conspiracies, signaling a significant disruption to this criminal network. The Postal Service also noted its dedication to preventing the misuse of its products in criminal activity.
Related Federal Cases
- Amgen Pays $71M for Pushing Drugs Off-Label · Kentucky
- Amgen Inc, Pharmaceutical Misrepresentation, California 2024 · Kentucky
- Ricky Ellis Lamb, Check Forgery, Nebraska 2024 · New Mexico
- Ricky Ellis Lamb Sentenced for Multi-State Check Fraud, Omaha NE, 2024 · Kansas
- Shirley Ann Cameron, Access Device Fraud, Kentucky 2024 · Kentucky
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
Get the grimiest stories delivered weekly. Subscribe free
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News