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Home Court filings USA v. Ayvazyan et al — Arman Hayrapetyan filings, C.D. Cal. NOTICE OF MOTION AND MOTION for Order for MOTION TO REDACT SUPERSEDING INDICTMENT… — US…

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NOTICE OF MOTION AND MOTION for Order for MOTION TO REDACT SUPERSEDING INDICTMENT… — USA v. Ayvazyan et al (Dkt. 422)

Record facts

CourtU.S. District Court for the Central District of California
Filed2021-06-04

U.S. District Court for the Central District of California · No. 2:20-cr-00579-SVW · Doc. 422 · 2021-06-04 · Docket on CourtListener

Summary

The government's motion to redact the superseding indictment for use at trial in United States v. Richard Ayvazyan et al., No. 2:20-cr-00579-SVW, in the U.S. District Court for the Central District of California, filed June 4, 2021 (Doc. 422). It asks to delete paragraph 32, which alleges at least 151 fraudulent PPP and EIDL loan applications, and the allegation that Tamara Dadyan devised and participated in bank fraud. The government states that it does not intend to prove these allegations at the June 15, 2021 trial and has received no objection from any defendant. It cites United States v. Lorefice and United States v. Miller on narrowing an indictment without prejudice. A declaration of Assistant United States Attorney Scott Paetty attaches the proposed redacted indictment, the Superseding Indictment and a redlined version.

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TRACY L. WILKISON 
Acting United States Attorney 
SCOTT M. GARRINGER 
Assistant United States Attorney 
Chief, Criminal Division 
SCOTT PAETTY (Cal. Bar No. 274719) 
CATHERINE S. AHN (Cal. Bar No. 248286) 
BRIAN FAERSTEIN (Cal. Bar No. 274850) 
Assistant United States Attorneys 
Major Frauds/Environmental and Community Safety Crimes Sections 
1100/1300 United States Courthouse 
312 North Spring Street 
Los Angeles, California 90012 
Telephone: (213) 894-6527/2424/3819 
Facsimile: (213) 894-6269/0141 
E-mail:
Scott.Paetty@usdoj.gov 
Catherine.S.Ahn@usdoj.gov 
Brian.Faerstein@usdoj.gov 
DANIEL S. KAHN 
Acting Chief, Fraud Section 
Criminal Division, U.S. Department of Justice 
CHRISTOPHER FENTON 
Trial Attorney, Fraud Section 
Criminal Division, U.S. Department of Justice 
1400 New York Avenue NW, 3rd Floor 
Washington, DC 20530 
Telephone: (202) 320-0539 
Facsimile: (202) 514-0152 
E-mail: 
Christopher.Fenton@usdoj.gov
Attorneys for Plaintiff 
UNITED STATES OF AMERICA 
UNITED STATES DISTRICT COURT 
FOR THE CENTRAL DISTRICT OF CALIFORNIA 
UNITED STATES OF AMERICA, 
Plaintiff, 
v. 
RICHARD AYVAZYAN, 
aka “Richard Avazian” and 
    “Iuliia Zhadko,” 
MARIETTA TERABELIAN, 
  aka “Marietta Abelian” and    
      “Viktoria Kauichko,” 
ARTUR AYVAZYAN, 
aka “Arthur Ayvazyan,” and 
TAMARA DADYAN, 
MANUK GRIGORYAN, 
aka “Mike Grigoryan,” and
No.  CR 20-579(A)-SVW 
GOVERNMENT’S MOTION TO REDACT 
SUPERSEDING INDICTMENT FOR USE AT 
TRIAL; DECLARATION OF SCOTT 
PAETTY; EXHIBITS  
Trial Date: 
June 15, 2021 
Trial Time: 
8:30 a.m. 
Location: 
Courtroom of the 
Hon. Stephen V. 
Wilson  
Case 2:20-cr-00579-SVW     Document 422     Filed 06/04/21     Page 1 of 10   Page ID
#:4557

 
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      “Anton Kudiumov,” 
ARMAN HAYRAPETYAN, 
EDVARD PARONYAN, 
aka “Edvard Paronian” and 
    “Edward Paronyan,” and 
VAHE DADYAN, 
 
Defendants. 
 
Plaintiff United States of America, by and through its counsel 
of record, the Acting United States Attorney for the Central District 
of California, Assistant United States Attorneys Scott Paetty, 
Catherine S. Ahn, and Brian Faerstein, and Department of Justice 
Trial Attorney Christopher Fenton, hereby files its Motion To Redact 
The Superseding Indictment For Use at Trial.  The government’s 
proposed redactions pertain to allegations that the government does 
not intend to prove up or submit to the jury at the upcoming trial in 
this matter, which is set to proceed on June 15, 2021. 
Prior to filing this Motion, government counsel advised counsel 
for defendants of the government’s intention to proceed at trial on a 
redacted indictment as described in this Motion.  Counsel for 
defendant Marietta Terabelian, John Littrell, inquired as to the 
reason the government was filing a redacted trial indictment.  
Government counsel responded that the purpose of the redacted trial 
indictment is to streamline the government’s case at trial.  As of 
the date of this filing, the government has not received an objection 
to use of a redacted indictment at trial from any of the defendants. 
This Motion is based upon the attached memorandum of points and 
authorities, the declaration of Scott Paetty and attached exhibits, 
// 
 
Case 2:20-cr-00579-SVW     Document 422     Filed 06/04/21     Page 2 of 10   Page ID
#:4558

 
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the files and records in this case, and such further evidence and 
argument as the Court may permit.   
Dated: June 4, 20121 
Respectfully submitted, 
 
TRACY L. WILKISON 
United States Attorney 
 
SCOTT M. GARRINGER 
Assistant United States Attorney 
Chief, Criminal Division 
 
 
      /s/ 
 
SCOTT PAETTY 
CATHERINE S. AHN 
BRIAN FAERSTEIN 
Assistant United States Attorneys 
CHRISTOPHER FENTON 
Department of Justice Trial Attorney 
 
Attorneys for Plaintiff 
UNITED STATES OF AMERICA 
 
 
 
 
Case 2:20-cr-00579-SVW     Document 422     Filed 06/04/21     Page 3 of 10   Page ID
#:4559

 
 
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MEMORANDUM OF POINTS AND AUTHORITIES 
I. 
BACKGROUND 
In submitting this motion, the government hereby seeks 
permission to redact from the Superseding Indictment certain 
allegations against RICHARD AYVAZYAN (“R. AYVAZYAN”), MARIETTA 
TERABELIAN, ARTUR AYVAZYAN (“A. AYVAZYAN”), TAMARA DADYAN (“T. 
DADYAN”), MANUK GRIGORYAN, ARMAN HAYRAPETYAN, EDVARD PARONYAN, and 
VAHE DADYAN (“V. DADYAN”) (collectively, “defendants”) that will not 
be essential to the presentation of the government’s case-in-chief at 
trial, and to file a Redacted Trial Superseding Indictment for use at 
trial in the above-entitled matter.   
In paragraph thirty-two of the Superseding Indictment, the 
government alleges as follows: 
As part of the conspiracy, between in or around March 2020 
and in or around August 2020, defendants R. AYVAZYAN, 
TERABELIAN, A. AYVAZYAN, T. DADYAN, GRIGORYAN, HAYRAPETYAN, 
PARONYAN, and V. DADYAN, together with other 
coconspirators, submitted and caused the submission of at 
least 151 fraudulent PPP and EIDL loan applications seeking 
a total of at least $21.9 million in PPP and EIDL proceeds 
from the SBA and at least 11 financial institutions, and 
received a total of at least $18 million in PPP and EIDL 
loan proceeds from the SBA and financial institutions. 
In paragraph sixty-one of the Superseding Indictment, the government 
alleges as follows:   
Beginning no later than in or around January 2021 and 
continuing until at least in or around February 2021, in 
Los Angeles County, within the Central District of 
California, and elsewhere, defendant T. DADYAN, together 
with others known and unknown to the Grand Jury, knowingly 
and with intent to defraud, attempted to execute a scheme 
to obtain moneys, funds, credits, assets, and other 
property owned by and in the custody and control of Bank 8, 
a federally-insured financial institution, by means of 
material false and fraudulent pretenses, representations, 
and promises, and the concealment of material facts 
To streamline the presentation of the evidence at trial, the 
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government intends to redact the entirety of paragraph 32, and the 
allegations in paragraph sixty-one that, defendant T. DADYAN, 
“devised, [and] participated in” bank fraud as alleged in count 
thirty-three of the Superseding Indictment because the government 
does not intend to prove up these allegations at trial.       
Therefore, referring to the pagination of the Superseding 
Indictment (ECF 154), the government’s proposed redactions are as 
follows:  
(1) at p. 11, lines 3 to 11 are deleted; and  
(2) at p. 46, line 11 to 12 “devised, participated in, and” is 
deleted.  
A copy of the proposed Redacted Trial Superseding Indictment, 
incorporating the alterations identified above with the paragraphs 
renumbered to incorporate the redactions, is attached to the 
declaration of Scott Paetty (“Paetty Decl.”) as Exhibit A.  A true 
and correct copy of the Superseding Indictment is attached to the 
Paetty Decl. as Exhibit B, and a redlined version of the Superseding 
Indictment, showing the changes resulting in the Redacted Trial 
Superseding Indictment, is attached to the Paetty Decl. as Exhibit C. 
As noted, the grounds for these proposed redactions of the 
Superseding Indictment are that the redactions contain allegations 
that the government does not intend to prove up at trial and because 
it assists the government in streamlining the presentation of 
evidence at trial.  Paetty Decl. ¶ 4.  
Prior to filing this Motion, government counsel advised counsel 
for defendants of the government’s intention to proceed at trial on a 
redacted indictment as described in this Motion.  Counsel for 
defendant Marietta Terabelian, John Littrell, inquired as to the 
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reason the government was filing a redacted trial indictment.  
Government counsel responded that the purpose of the redacted trial 
indictment is to streamline the government’s case at trial.  That was 
the only response the government received regarding this Motion.  As 
of the date of this filing, the government has not received an 
objection to use of a redacted Superseding Indictment at trial from 
any of the defendants. 
II. 
ARGUMENT 
It is well-settled that, where a redaction has the effect of 
narrowing the indictment, makes no material change in the charges and 
does not result in prejudice to the defendant, it is permissible.  In 
United States v. Lorefice, 192 F.3d 647 (7th Cir. 1999), the Seventh 
Circuit addressed precisely the issue of the propriety of the 
district court’s allowing the government to redact allegations from 
the indictment without resubmitting the matter to the grand jury, and 
it ruled as follows: 
There was nothing wrong in the district court’s actions.  
An indictment may be altered without resubmission to the 
grand jury as long as the alteration makes no material 
change and there is no prejudice to the defendant [citation 
omitted].  Indeed, in United States v. Miller, 471 U.S. 130 
(1985), the Supreme Court expressly held that to drop from 
an indictment allegations that are unnecessary to an 
offense clearly contained within it does not 
unconstitutionally amend the indictment.  Id. at 144, 
overruling part of Ex parte Bain, 121 U.S. 1 (1887). 
 
Lorefice, 192 F.3d at 653.  Ninth Circuit authority is wholly 
consistent with the Seventh Circuit’s ruling in Lorefice.1  See 
 
1 The Seventh Circuit also correctly held in Lorefice that the 
district court’s redaction of the indictment, based on the 
government’s motion, was not a proper subject for exploration at 
trial, because “[e]vidence about the government’s drafting decisions 
is not relevant for the jury’s consideration, and it is potentially 
(footnote cont’d on next page) 
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United States v. Aquilar, 756 F.2d 1418, 1432 (9th Cir. 1985) 
(correction of clerical errors and “reading out” of surplusage 
to an indictment is permitted without resubmission to the grand 
jury, as long as defendant is not prejudiced thereby); United 
States v. Abascal 564 F.2d 821, 832 (9th Cir. 1977) (same). 
Given that: (1) the proposed redactions to the Superseding 
Indictment contain allegations that the government does not 
intend to prove up at trial, and (2) redaction of these 
allegations makes no adverse material changes in the charges and 
does not prejudice defendants, the Court should grant the 
government’s motion to redact the Superseding Indictment in the 
manner indicated for use at trial.   
III. CONCLUSION 
For all the foregoing reasons, the government hereby requests 
permission form the Court to redact the Superseding Indictment 
// 
 
 
 
confusing.”  Lorefice, 192 F.3d at 653.  Accordingly, in the event 
that the Court grants the government’s instant motion, it should also 
preclude defendants from introducing evidence at trial about the 
redaction itself because it is immaterial to the charges at issue 
during the trial.  Id. at 652-53. 
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as set forth in Exhibit A to the Paetty Declaration and to have 
Exhibit A filed as the Redacted Trial Superseding Indictment in 
this matter. 
Dated: June 4, 2021 
Respectfully submitted, 
 
TRACY L. WILKISON 
Acting United States Attorney 
 
SCOTT M. GARRINGER 
Assistant United States Attorney 
Chief, Criminal Division 
 
 
      /s/ 
 
SCOTT PAETTY 
CATHERINE S. AHN 
BRIAN FAERSTEIN 
Assistant United States Attorneys 
CHRISTOPHER FENTON 
Department of Justice Trial Attorney 
 
Attorneys for Plaintiff 
UNITED STATES OF AMERICA 
 
 
 
Case 2:20-cr-00579-SVW     Document 422     Filed 06/04/21     Page 8 of 10   Page ID
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DECLARATION OF SCOTT PAETTY 
    I, Scott Paetty, hereby state and declare: 
    1.  I am an Assistant United States Attorney (“AUSA”) in the 
Central District of California and, along with AUSAs Catherine Ahn 
and Brian Faerstein, and Department of Justice Trial Attorney 
Christopher Fenton, am responsible for handling the prosecution of 
the case of United States v. Richard Ayvazyan, et al., CR 20-579(A)-
SVW.  I make this declaration based upon personal knowledge and, if 
called upon to do so, could and would so testify. 
     2.  A copy of the government’s proposed Redacted Trial 
Superseding Indictment is attached to this declaration as Exhibit A.  
A copy of the Superseding Indictment in this case is attached to this 
declaration as Exhibit B.  A redlined version of the Superseding 
Indictment, showing the changes made to the Indictment that resulted 
in the proposed Redacted Trial Superseding Indictment, is attached to 
this declaration as Exhibit C.   
3.  Referring to the pagination of the Superseding Indictment, 
the government’s proposed redactions are as follows:  
(1) at p. 11, lines 3 to 11 are deleted; and  
(2) at p. 46, line 11 to 12 “devised, participated in, and” is 
deleted. 
     4.  The grounds for these proposed redactions are that they 
contain allegations that the government does not intend to prove up 
at trial, and redaction of these allegations makes no adverse 
material changes in the charges and does not prejudice defendants.   
     5.  Before filing this motion, government counsel sent an email 
to counsel for all defendants seeking their position regarding this 
motion.  Counsel for defendant Marietta Terabelian, John Littrell, 
Case 2:20-cr-00579-SVW     Document 422     Filed 06/04/21     Page 9 of 10   Page ID
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inquired as to the reason the government was filing a redacted trial 
indictment.  That was the only response the government received 
regarding this Motion.  Government counsel responded that the purpose 
of the redacted trial indictment is to streamline the government’s 
case at trial.  As of the date of this filing, the government has not 
received an objection to use of a redacted indictment at trial from 
any of the defendants. 
    I declare under penalty of perjury that the foregoing is true and 
correct to the best of my knowledge.  Executed at Los Angeles, 
California on June 4, 2021. 
 
 
 
SCOTT PAETTY 
 
Case 2:20-cr-00579-SVW     Document 422     Filed 06/04/21     Page 10 of 10   Page ID
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