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LA-Based COVID-19 Relief Fraud Ring Sentenced
Seven members of a Los Angeles-based fraud ring were sentenced for a scheme to fraudulently obtain more than $20 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
According to court documents and evidence presented at a June 2021 trial, the defendants used dozens of fake, stolen, or synthetic identities to submit fraudulent applications for approximately 150 PPP and EIDL loans. In support of the fraudulent loan applications, the defendants also submitted false and fictitious documents to lenders and the Small Business Administration (SBA), including fake identity documents, tax documents, and payroll records.
Richard Ayvazyan, 43, of Encino, was sentenced to 17 years in prison on November 15. Marietta Terabelian, 37, of Encino, was sentenced to six years in prison on the same date. Artur Ayvazyan, 41, of Encino, was sentenced to five years in prison. The Ayvazyan brothers, along with Manuk Grigoryan, 28, of Sun Valley, Edvard Paronyan, 41, of Granada Hills, Vahe Dadyan, 42, of Glendale, Arman Hayrapetyan, 39, of Glendale, and Tamara Dadyan, 42, of Encino, were all charged in the scheme.
The defendants then used the fraudulently obtained funds as down payments on luxury homes in Tarzana, Glendale, and Palm Desert. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags, clothing, and a Harley-Davidson motorcycle.
The scheme was a clear example of pandemic relief fraud, and the Department of Justice is committed to combating and preventing criminals from exploiting national emergencies for their personal benefit. The sentences reflect our determination to root out and punish wrongdoers who use national emergencies to defraud the government and the American taxpayer.
The case serves as a reminder of the importance of protecting government aid programs from those who would seek to exploit them for personal gain. The Office of Inspector General (OIG) will work tirelessly with its law enforcement partners to unmask those responsible and bring them to justice.
Key Facts
- State: California
- Category: White Collar Crime|Organized Crime
- Source: DOJ Press Release â†â€â€
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