LOS ANGELES – A former Wells Fargo & Co. banker and his brother have been busted for allegedly siphoning off over $2.7 million in COVID-19 relief funds, authorities revealed today. Norayr Madadi, 40, of Burbank, and Vazrik Madadi, 44, of Glendale, were arrested on Wednesday morning, charged with an eight-count federal indictment.
The brothers are accused of conspiracy to commit wire fraud, submitting false loan applications for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). They’re said to have used stolen identities of disabled individuals living in long-term care facilities to perpetuate their scheme.
According to the indictment unsealed this week, Norayr Madadi, while a banker at Wells Fargo, opened fraudulent accounts under shell companies and fictitious names. The brothers funneled millions into bank accounts they controlled, using the funds for gambling, luxury goods, and cash withdrawals.
The Madadis face substantial prison time if convicted: up to 20 years for each wire fraud charge and 10 years for money laundering counts. Norayr also risks five years for making false statements and a mandatory two-year term for aggravated identity theft. The FBI is leading the investigation, with Assistant United States Attorney Jason Pang handling the prosecution.
Anyone with information on this or other COVID-19 fraud attempts can report it to the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or through their online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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