Fourteen individuals were arrested in connection with a vast scheme to fraudulently obtain over $25 million in COVID-19 relief funds and federally-guaranteed small business loans, according to U.S. Immigration and Customs Enforcement.
The alleged criminal network, with some members believed to be in Armenia, involved concocting sham corporations, phony documents, and false tax returns to secure loans.
What we know:
Fourteen defendants, including residents from the San Fernando Valley and Glendale, were arrested on May 28.
They are accused in two federal criminal complaints of fraudulently obtaining more than $25 million in taxpayer-funded COVID-19 relief funds and federally-guaranteed small business loans.
Four additional defendants named in the complaints are believed to be in Armenia.
The charges include conspiracy to defraud the government, false claims, wire fraud, bank fraud, money laundering conspiracy, laundering monetary instruments, engaging in monetary transactions derived from unlawful activity, and/or structuring financial transactions to evade reporting requirements.
During the arrests, law enforcement seized approximately $20,000 in cash, two money-counting machines, currency straps, multiple cell phones and laptops, two loaded semi-automatic 9mm handguns, and boxes of 9mm ammunition. --->READ MORE HERE
 |
| Patrick T. Fallon/AFP/Getty Images |
Fourteen people have been arrested on suspicion of engaging in a years-long scheme to fraudulently obtain more than $25 million in COVID-19 relief funds and government-backed small business loans.
During the arrests Wednesday, law enforcement seized about $20,000 in cash, two money-counting machines, paper cash bands, multiple cellphones, laptops, two loaded semi-automatic 9 mm handguns and boxes of ammunition, authorities said.
“This transnational criminal network sought to defraud the government of millions of dollars and almost succeeded,” Homeland Security Investigations Los Angeles Acting Special Agent in Charge John Pasciucco said in a statement.
The agency “is continuing to identify these criminal groups looking to profit from the pandemic and will use all available resources to criminally prosecute or remove them from the country,” he added.
A total of 18 people have been charged with felonies in connection with the alleged scheme — including conspiracy to defraud the government with respect to claims; making false, fictitious, or fraudulent claims; wire fraud and attempted wire fraud; bank fraud and attempted bank fraud; money laundering conspiracy, laundering of monetary instruments, engaging in monetary transactions in property derived from specified unlawful activity, and structuring financial transactions to evade reporting requirements, according to federal prosecutors.
Four of the 18 people charged have not yet been arrested and are believed to be in Armenia, prosecutors said.
Prosecutors allege Vahe Margaryan, 42, of Tujunga, orchestrated the scheme to defraud banks and the Small Business Administration’s Preferred Lender Program by directing the owners of sham corporations to open bank accounts and create phony documents to support loan applications to buy other sham corporations.
The scheme allegedly began before the pandemic in 2018 and lasted until January, authorities said.
In probable cause statements filed in federal court, investigators wrote that the defendants laundered the money through multiple bank accounts and ultimately used the cash for personal expenses. --->READ MORE HEREFollow links below to relevant/related stories and resources:
Want a COVID vaccine? It could cost you $200.
A new Covid variant NB.1.8.1 is spreading: here are the symptoms to look out for
USA TODAY: Coronavirus Updates
WSJ: Coronavirus Live Updates
YAHOO NEWS: Coronavirus Live Updates
NEW YORK POST: Coronavirus The Latest
If you like what you see, please "Like" and/or Follow us on FACEBOOK here, GETTR here, and TWITTER here.
No comments:
Post a Comment