Federal prosecutors announced Thursday that 14 individuals, mostly from the Los Angeles area, have been arrested in connection with a massive scheme to defraud the U.S. government of over $25 million in COVID-19 relief funds and small business loans.
According to the U.S. Department of Justice, a total of 18 people were named in two criminal complaints. Four suspects remain at large and are believed to be in Armenia.
The group is accused of multiple crimes, including conspiracy to defraud the government, wire fraud, bank fraud, money laundering conspiracy, and submitting false or fictitious claims to secure federal funds intended to assist small businesses during the pandemic.
“This transnational criminal network sought to defraud the government of millions of dollars and almost succeeded,” said John Pasciucco, Acting Special Agent in Charge for Homeland Security Investigations in Los Angeles.
During the arrests, authorities seized approximately $20,000 in cash, two money-counting machines, loaded semi-automatic firearms, boxes of ammunition, laptops, and multiple cellphones, suggesting the operation was both large-scale and well-organized.
Those arrested include:
Vahe Margaryan (aka William McGrayan), 42, of Tujunga
Sarkis Gareginovich Sarkisyan (aka Samuel Shaw), 37, of Glendale
Mery Babayan (aka Mery Diamondz), 32, of Van Nuys
Felix Parker, 77, of North Hollywood
Axsel Markaryan (aka Axel Mark), 47, of Pacoima
If convicted, the defendants face decades in federal prison, with penalties varying by charge.
The DOJ’s investigation remains ongoing, and officials are working to apprehend the remaining suspects believed to be overseas.
