Criminal ring with SoCal ties swindled $25 million in COVID relief, small business loans, feds say

Fourteen individuals have been arrested in connection with a fraud scheme that aimed to illegally obtain over $25 million in COVID-19 relief funds. Law enforcement seized significant evidence including cash, weapons, and technology during the arrests. Eighteen people have been charged with various felonies including conspiracy and fraud. Prosecutors allege that Vahe Margaryan orchestrated the scheme, which involved creating sham companies and fraudulent documentation to deceive banks and governmental programs. This intricate scam commenced around 2018 and extended through January before the arrests by authorities.

The scheme allegedly began before the pandemic in 2018 and lasted until January, authorities said.

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, said Homeland Security Investigations Los Angeles.

A total of 18 people have been charged with felonies in connection with the alleged scheme, including conspiracy to defraud the government.

Read at Los Angeles Times