LOS ANGELES — Multiple residents of the San Fernando Valley and Glendale are among more than a dozen defendants federally charged with defrauding over $25 million in COVID-19 relief funds and SBA loans, federal prosecutors announced Wednesday.
Among those arrested was Sarkis Sarkisyan, 37, of Glendale, who allegedly submitted a fake Paycheck Protection Program (PPP) loan application in April 2021 for a nonexistent business, receiving over $700,000 in funds meant to help small businesses during the pandemic.
Mery Babayan, 32, of Van Nuys, along with two co-defendants, is accused of defrauding a bank by staging the sham sale of a fake company to another fictitious entity in order to secure nearly $3 million in federally guaranteed SBA loans.
Felix Parker, 77, of North Hollywood, allegedly fabricated financial records in January 2023, falsely claiming that a shell company generated millions in income and owed federal taxes. He reportedly obtained more than $2 million in SBA loan funds.
Axsel Markaryan, 47, of Pacoima, is accused of submitting bogus tax returns in June 2023 to fraudulently secure over $5 million in SBA loans. Authorities say he laundered some of the money, sending at least $100,000 to a co-conspirator in Armenia.
The defendants face conspiracy and fraud charges and could face decades in federal prison if convicted.
During the operation, law enforcement seized nearly $20,000 in cash, money-counting machines, high-denomination currency straps, multiple cell phones and laptops, two loaded 9mm semi-automatic handguns, and boxes of ammunition.
“Today’s enforcement action is intended to send a message to all criminals who take advantage of government programs designed to help those who need them most,” said U.S. Attorney Bill Essayli. “If you took COVID-19 or SBA money you weren’t entitled to, your door could be the next one we visit.”
