COVID Funds Ripped Off: 8+ Years for LA Mastermind

Los Angeles – Robert Mirumyan, 34, will spend the next 97 months in a federal prison cell after admitting he orchestrated a brazen scheme to steal over $800,000 in COVID-19 unemployment benefits. The operation, fueled by stolen identities, preyed on the overwhelmed California Employment Development Department (EDD) during a time of unprecedented hardship, leaving legitimate claimants in the lurch and the system struggling to cope.

Mirumyan wasn’t a lone wolf. While federal prosecutors are keeping details of his full network close to the vest, court records reveal a calculated effort to file bogus unemployment claims using stolen names and personal information. These fraudulent applications triggered the issuance of debit cards loaded with benefits meant for those genuinely out of work during pandemic lockdowns. Mirumyan and his crew then systematically drained those cards, converting the stolen funds into untraceable cash.

The sheer scale of the fraud is staggering. Over $804,000 was illegally obtained – money that could have provided critical support to families struggling to stay afloat amidst job losses and economic uncertainty. The EDD, already drowning in a tidal wave of claims, was slow to detect the widespread use of stolen identities, allowing Mirumyan’s operation to continue for an extended period, siphoning off vital resources from those who desperately needed them.

The investigation began with a flag raised by the U.S. Postal Inspection Service, who noticed suspicious activity surrounding the debit card usage. Working with the EDD’s fraud investigation unit, the feds traced the cash withdrawals back to Mirumyan and his associates, leading to his arrest and a guilty plea in June. Federal prosecutors made it clear to the court that Mirumyan wasn’t a victim of circumstance, but a deliberate predator who exploited a national crisis for personal gain.

At his sentencing before U.S. District Judge Percy Anderson, Mirumyan faced the full force of the law. Judge Anderson didn’t hold back, calling Mirumyan’s actions “galling” and “callous.” He emphasized the defendant’s blatant disregard for the suffering of others and his conscious decision to profit from a national emergency. Beyond the lengthy prison sentence, Mirumyan is now legally obligated to repay the entire $804,579 he stole – a restitution order that will likely follow him for years to come.

This case highlights a disturbing vulnerability within government relief programs. The rapid rollout of funds, combined with overwhelmed systems, created a perfect breeding ground for criminals like Mirumyan. Experts warn that similar schemes are likely to emerge in future crises, emphasizing the urgent need for stricter identity verification protocols and more effective fraud detection mechanisms. The feds are now scrambling to work with state agencies to fortify security measures and prevent future exploitation.

Public outrage over these scams is escalating, fueled by reports of individuals waiting months for legitimate benefits while criminals pocket fortunes. The sentencing of Mirumyan is intended to send a clear message: stealing from pandemic relief programs isn’t a victimless crime, and those who engage in such activities will be held accountable. The EDD, facing relentless criticism for its handling of the unemployment crisis, is under intense pressure to implement more robust safeguards.

The feds aren’t stopping with Mirumyan. Sources within the U.S. Attorney’s Office indicate that further indictments are likely in the coming months as they continue to unravel his network of accomplices. The investigation is also focusing on how Mirumyan obtained the stolen identities, potentially revealing a wider pattern of identity theft. This case serves as a stark reminder that even during times of national crisis, the threat of criminal activity remains constant.