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Fourteen people were arrested on May 28 for allegedly being involved in a scheme to fraudulently obtain over $25 million in COVID-19 relief funds and federally guaranteed small business loans, according to the Department of Justice (DOJ).

The individuals are among the 18 people charged in connection with the case. Four who have not yet been arrested are currently believed to be in Armenia, the DOJ said in a <a href="https://www.justice.gov/usao-cdca/pr/14-arrested-complaints-alleging-more-25-million-covid-19-relief-and-small-business" target="_blank" rel="nofollow noopener">statement</a>.

All of them are facing charges of conspiracy to defraud the government, false claims, wire fraud, bank fraud, money laundering, laundering of monetary instruments, monetary transactions involving property derived from specified unlawful activity, and structuring financial transactions to evade reporting requirements.

Law enforcement officers seized about $20,000 in cash, two money-counting machines, paper cash bands, cellphones, laptops, two loaded semi-automatic handguns, and boxes of ammunition during the arrests.

Tyler Hatcher, special agent in charge of IRS Criminal Investigation, said the defendants were accused of fraudulently obtaining funds through the Small Business Administration’s (SBA) Paycheck Protection Program, Economic Injury Disaster Loan program, and other federal funding programs.

“These programs were established to assist individuals and businesses in need of financial assistance and instead were pilfered by the named defendants,” Hatcher said in the statement.

Among those arrested was Vahe Margaryan, 42, who allegedly instructed “owners of sham companies” to open bank accounts and fabricate documents to support loan applications used to purchase other fake businesses.

Prosecutors alleged that Margaryan orchestrated the scheme from 2018 to January 2025 and paid for tax returns that falsely claimed millions in revenue and tens of thousands in taxes owed.

Another defendant named by the DOJ is 77-year-old Felix Parker, who was arrested for allegedly making false statements and providing fraudulent documents, including fake tax returns, in January 2023.

Parker is believed to have received more than $2 million through a government-backed small business program, the DOJ stated.

Also arrested was 47-year-old Axsel Markaryan, who was accused of submitting fake documents to fraudulently secure more than $5 million in SBA loans in June 2023.

Prosecutors stated that Markaryan allegedly transferred at least $100,000 to a co-conspirator in Armenia just months after obtaining the loans.

Authorities also arrested Sarkis Gareginovich Sarkisyan, 37, who allegedly submitted a false application and false documents to obtain a loan through the Paycheck Protection Program, which provides low-interest, forgivable loans to help small businesses retain their staff and cover expenses during the pandemic. Sarkisyan allegedly received more than $700,000 from the program by creating a fake business.

“This transnational criminal network sought to defraud the government of millions of dollars and almost succeeded,” Homeland Security Investigations (HSI) Los Angeles acting special agent in charge John Pasciucco stated.

It remains unclear whether the defendants have been assigned legal representation as of publication.

<em>From <a href="https://www.theepochtimes.com/us/14-people-charged-in-25-million-covid-relief-small-business-loan-fraud-scheme-5865970">The Epoch Times</a></em>

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14 People Charged in $25 Million COVID Relief, Small Business Loan Fraud Scheme

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