LOS ANGELES, CA – A major fraud operation involving COVID-19 relief funds has been dismantled, with 14 suspects arrested in connection to a $25 million scheme. The Department of Justice has identified 18 individuals linked to this fraud, some of whom are believed to be in Armenia.
The suspects allegedly exploited federal programs designed to support small businesses during the pandemic, submitting false claims to secure funds from the Paycheck Protection Program and Economic Injury Disaster Loan program. Instead of aiding businesses, the funds were diverted for personal use.
The investigation resulted in the seizure of cash and firearms, highlighting the criminal activities of those involved. Federal agencies, including the FBI and the SBA’s Office of Inspector General, are working together to recover the stolen funds and dismantle the network.
This case is part of a broader effort to combat pandemic-related fraud, as authorities remain vigilant against those who exploit government aid. The suspects face serious charges, including wire fraud and money laundering, which carry heavy penalties.
Law enforcement continues to investigate the scheme, urging the public to report any suspicious activity. This case serves as a reminder of the importance of protecting relief funds and ensuring they reach those truly in need.