For the second consecutive week, the Department of Homeland Security executed a significant early-morning operation in Los Angeles aimed at transnational organized crime groups. This week’s operation resulted in the arrest of fourteen individuals from an Armenian fraud network claimed to have illicitly obtained $30 million in COVID relief and Small Business loans intended for American taxpayers.
“If you’re unlawfully taking government funds, be prepared for us to knock on your door next,” warned U.S. Attorney for California’s Central District, Bill Essayli.
Authorities identify McGrayan as the mastermind behind the crime syndicate, which attempted to fraudulently acquire $47 million in federal aid and successfully acquired approximately $30 million. According to court documents, the accused are said to have used counterfeit documents, such as fake bank and tax records, to establish numerous shell companies to apply for the government funds.
“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.
This week’s Department of Homeland Security raid netted 14 suspects in an Armenian fraud ring. (iStock)
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.
