Nailed: US Atty Bill Essayli Announces 14 Arrests in Huge COVID Relief Fraud Bust

Money, money, money. (Credit: Blogging Guide/Unsplash)

You had a feeling at the time that there was a lot of grift and fraud going on as we were locked in our homes during the pandemic and the government was throwing around massive sums of money in COVID relief funds. Someone would surely try to take advantage, right?

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According to the U.S. Attorney for Los Angeles, Bill Essayli, there were a lot of those “someones,” and he and his team just nabbed 14 of them who ripped us off to the tune of $30 million.

The fraudsters hailed from the San Fernando Valley and Glendale:

According to the U.S. Attorney's Office, those arrested Wednesday include Sarkis Sarkisyan, 37, of Glendale, who allegedly submitted a false application and bogus documents to obtain a loan under the Paycheck Protection Program, which provided low-interest, forgivable loans to help small businesses retain their workforce and cover expenses. Sarkisyan allegedly applied in April 2021 on behalf of a fake business that received more than $700,000 in PPP funds.

Mery Babayan, 32, of Van Nuys, together with two co-defendants, allegedly defrauded a bank by "representing the nonexistent sale of a sham business to another sham company to obtain a nearly $3 million federally guaranteed loan'' through a Small Business Administration lending program.

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Essayli, who had been serving in the California state assembly as a Republican representing Riverside, has quickly made his mark since Attorney General Pam Bondi swore him in on April 1.


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Although he was a strong fighter against the progressive zealots in Sacramento and will be missed, he’s doing a bang-up job in his new role.

Also arrested were 77-year-old  Felix Parker of North Hollywood who pocketed millions in small business funds, and 47-year-old Axsel Markaryan of Pacoima, who pulled in $5 million in fraudulent SBA loans. All 14 defendants are being charged with conspiracy to defraud the government:

During the takedown, authorities seized nearly $20,000 in cash, two money-counting machines, paper cash bands or currency straps in denominations of $2,000 and $10,000, multiple cell phones, multiple laptops, two loaded semi-automatic 9mm handguns, and boxes of 9mm ammunition, prosecutors said.

If convicted, each defendant could face decades in federal prison, prosecutors noted.

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Essayli released a statement Wednesday:

"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,'' U.S. Attorney Bill Essayli said in a statement.

"If you took COVID-19 or SBA money you weren't entitled to, your door could be the next one we visit. Together with our law enforcement partners, my office will aggressively prosecute individuals who cheat the system meant to protect and support law-abiding citizens.''

Enjoy your stay, guys.

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