For the second week in a row, the Department of Homeland Security conducted an impactful early-morning operation in Los Angeles, this time targeting transnational organized crime groups. The recent operation resulted in the arrest of fourteen individuals from an Armenian fraud network. Authorities revealed that the group had illicitly obtained $30 million in COVID relief funds and Small Business loans intended to support American taxpayers.
“If you are fraudulently acquiring government funds, be prepared for potential consequences, as law enforcement could soon knock on your door,” warned Bill Essayli, the U.S. Attorney for California’s Central District.
According to investigators, McGrayan is identified as the mastermind behind the criminal network responsible for attempting to defraud the government of $47 million, of which they successfully pocketed around $30 million. Court records detail how the suspects allegedly utilized counterfeit documents, such as false bank records and tax filings, to establish multiple shell companies through which they sought federal funding.
“That’s $47 million in taxpayer funds that was meant to go to good use, and these transnational criminal organizations are exploiting the American people’s good will and using it for their personal gain,” said John Pasciucco, Acting Special Agent in Charge for HSI Los Angeles. Â
— (California state Assembly)
After the fourteen suspects were arrested, they were brought to an unmarked, specially designated processing center to be booked. Law enforcement seized approximately $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.
The suspects are charged with a range of crimes from conspiracy, wire and bank fraud to money laundering.
Authorities say some of the money was spent on houses and luxury goods, other amounts were sent to Armenia, making it harder for the U.S. to trace.
