E. Martin Estrada, U.S. Attorney | U.S. Attorney's Office for the Central District of California
Fourteen individuals have been arrested in Los Angeles on charges related to the fraudulent acquisition of over $25 million in COVID-19 relief funds and small business loans. The arrests were made following two federal criminal complaints that allege a conspiracy to defraud the government through various financial crimes, including wire fraud, bank fraud, and money laundering.
The defendants include residents from San Fernando Valley and Glendale, with four additional suspects believed to be in Armenia. Among those charged is Vahe Margaryan, also known as "William McGrayan," who allegedly orchestrated a scheme involving fake corporations and false financial documents to secure loans under the Small Business Administration’s (SBA) Preferred Lender Program. Other defendants include Sarkis Gareginovich Sarkisyan of Glendale, Mery Babayan of Van Nuys, Felix Parker of North Hollywood, and Axsel Markaryan of Pacoima.
During the operation, law enforcement seized cash, money-counting machines, cell phones, laptops, firearms, and ammunition. United States Attorney Bill Essayli emphasized the message this action sends to those exploiting government programs: “If you took COVID-19 or SBA money you weren’t entitled to, your door could be the next one we visit.”
Jonathan Huang from the U.S. Small Business Administration Office of Inspector General stated that their office will continue investigating fraud related to SBA program funds. John Pasciucco from Homeland Security Investigations highlighted the ongoing efforts to identify criminal groups profiting from pandemic-related schemes.
Tyler Hatcher from IRS Criminal Investigation underscored their commitment to dismantling organizations that misuse assistance programs intended for legitimate beneficiaries.
The defendants face potential decades-long sentences if convicted. These arrests are part of broader efforts by the Department of Justice's COVID-19 Fraud Enforcement Task Force and Strike Force Teams established to combat pandemic-related financial fraud.
For more information on reporting attempted fraud involving COVID-19 relief funds, individuals can contact the Department of Justice’s National Center for Disaster Fraud Hotline or submit details via their web complaint form.
Investigations into these cases were conducted by multiple agencies including SBA-OIG, IRS Criminal Investigation, and HSI’s El Camino Real Financial Crimes Task Force. Prosecutors involved in these cases are Assistant United States Attorneys Mark Aveis and Gregg Marmaro from the Major Frauds Section and Maxwell Coll from the Cyber and Intellectual Property Crimes Section.
