Multiple residents of the San Fernando Valley and Glendale are among more than a dozen defendants facing federal charges alleging they fraudulently obtained more than $25 million in COVID-19 relief funds and federally guaranteed small business loans, officials announced Wednesday.
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.
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WATCH HEREMery 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.
Felix Parker, 77, of North Hollywood, who in January 2023 allegedly falsely claimed that a shell company earned millions of dollars a year and owned tens of thousands of dollars in federal income taxes, and he allegedly received more than $2 million in funds that were supposed to help small businesses.
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SIGN UP Axsel Markaryan, 47, of Pacoima, who in June 2023 allegedly fraudulently obtained more than $5 million in SBA loans by submitting fake documents, including bogus tax returns, then laundered the money in part by sending at least $100,000 to a co-conspirator in Armenia.
The defendants are charged with conspiracy to defraud the government with respect to claims and other charges.
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.
"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.''
