First Superseding Indictment — United States v. Vardges Abelyan (C.D. Cal., Dkt. 66, filed 08/01/24)

Summary

A First Superseding Indictment returned by the October 2023 Grand Jury in United States v. Vardges Abelyan, CR No. 23-285(A)-ODW, in the United States District Court for the Central District of California, filed August 1, 2024 as Document 66. Count One charges wire fraud under 18 U.S.C. § 1343 for an SBA transfer of approximately $10,000 in EIDL funds on June 23, 2020, and extends the alleged scheme through at least July 24, 2024. It adds allegations that Abelyan failed to surrender for service of his sentence, removed his court-imposed location monitor, fled to Mexico and traveled to Germany in an effort to flee to Armenia. Counts Two and Three charge false statements to United Wholesale Mortgage on a $336,000 loan, and Counts Four and Five charge aggravated identity theft under 18 U.S.C. § 1028A(a)(1).

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Cite this document

“First Superseding Indictment — United States v. Vardges Abelyan (C.D. Cal., Dkt. 66, filed 08/01/24).” Original at ecf.cacd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/first-superseding-indictment-usa-v-abelyan-dkt-66-c-d-cal-606aa7792d/, SHA-256 18f2d4e76515969dfde504cfe0bd3d4d0480faf20fbc84d0438d750e75e0361f.

Full text

Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 1 of 9 Page ID #:520

3
8/1/2024
4
CDO

7
UNITED STATES DISTRICT COURT
8
FOR THE CENTRAL DISTRICT OF CALIFORNIA
9
October 2023 Grand Jury
10
UNITED STATES OF AMERICA, CR No. 23-285(A)-ODW
11
Plaintiff, F I R S T
12 S U P E R S E D I N G
v. I N D I C T M E N T
13
VARDGES ABELYAN, [18 U.S.C. § 1343: Wire Fraud; 18
14 U.S.C. § 1014: False Statements to
Defendant. a Financial Institution; 18 U.S.C.
15 § 1028A(a)(1): Aggravated Identity
Theft; 18 U.S.C. § 982: Criminal
16 Forfeiture]
17

18 The Grand Jury charges:
19 COUNT ONE
20 [18 U.S.C. § 1343]
21 A. INTRODUCTORY ALLEGATIONS
22 1. At times relevant to this First Superseding Indictment:
23 The Defendant and Relevant Entities
24 a. Defendant VARDGES ABELYAN was the sole owner of Cargo
25 Fleet Rentals Inc., a California corporation.
26 b. Defendant ABELYAN maintained at JPMorgan Chase Bank,
27 N.A., a checking account in the name of Cargo Fleet Rentals Inc. (the
28 “Cargo Fleet Rentals Account”), a checking account in his own name
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 2 of 9 Page ID #:521

1 ending 6991 (the “6991 Account”), and a checking account in his own

2 name ending 5832 (the “5832 Account”).

3 c. United Wholesale Mortgage, LLC, was a “financial

4 institution” within the meaning of 18 U.S.C. § 20.

5 The Economic Injury Disaster Loan Program

6 d. The Coronavirus Aid, Relief, and Economic Security
7 (“CARES”) Act was a federal law enacted in or about March 2020 that
8 was designed to provide emergency financial assistance to Americans
9 suffering economic harm as a result of the COVID-19 pandemic.
10 e. The Economic Injury Disaster Loan Program (“EIDL”) was
11 a United States Small Business Administration (“SBA”) program that
12 provided low-interest financing to small businesses, renters, and
13 homeowners in regions affected by declared disasters.
14 f. The CARES Act authorized the SBA to provide EIDL loans
15 of up to $2 million to eligible small businesses experiencing
16 substantial financial disruption due to the COVID-19 pandemic.
17 g. To obtain an EIDL loan, a qualifying business was
18 required to submit an application to the SBA and provide information
19 about the business’s operations, such as the number of employees,
20 gross revenues for the 12-month period preceding the disaster, and
21 cost of goods sold in the 12-month period preceding the disaster. In
22 the case of EIDL loans for COVID-19 relief, the 12-month period was
23 the 12-month period from January 31, 2019, to January 31, 2020. The
24 applicant was also required to certify that all of the information in
25 the application was true and correct to the best of the applicant’s
26 knowledge.
27 h. EIDL loan applications were submitted directly to the
28 SBA and processed by the agency with support from a government
2
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 3 of 9 Page ID #:522

1 contractor. The amount of the loan, if the application was approved,

2 was determined in part based on the information provided by the

3 applicant about employment, revenue, and cost of goods sold. Any

4 funds issued under an EIDL loan were issued directly by the SBA.

5 i. Borrowers, as part of the EIDL loan application,

6 certified that they would use loan proceeds “solely as working

7 capital to alleviate economic injury caused by disaster occurring in

8 the month of January 31, 2020 and continuing thereafter.”

9 B. THE SCHEME TO DEFRAUD

10 2. Beginning no later than on or about June 18, 2020, and
11 continuing through at least July 24, 2024, in Los Angeles County,
12 within the Central District of California, and elsewhere, defendant
13 ABELYAN, together with others known and unknown to the Grand Jury,
14 knowingly and with the intent to defraud, devised, participated in,
15 and executed a scheme to defraud the SBA as to material matters, and
16 to obtain money and property by means of material false and
17 fraudulent pretenses, representations, and promises.
18 3. The scheme to defraud operated, in substance, as follows:
19 a. To create the false appearance that Cargo Fleet
20 Rentals conducted real business, defendant ABELYAN opened the Cargo
21 Fleet Rentals Account.
22 b. Defendant ABELYAN made and caused to be made false
23 statements to the SBA in connection with obtaining EIDL loan funds on
24 behalf of Cargo Fleet Rentals, including false representations
25 regarding Cargo Fleet Rentals’ number of employees and gross
26 revenues, and false certifications that the loan funds would be used
27 for permissible business purposes.
28
3
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 4 of 9 Page ID #:523

1 c. Defendant ABELYAN caused the SBA to deposit funds in

2 the Cargo Fleet Rentals Account by means of interstate wire transfer.

3 d. To avoid punishment for his crime and his obligation

4 to make restitution to the SBA, defendant ABELYAN failed to surrender

5 for service of his sentence as ordered by the Court, removed his

6 court-imposed location monitor, fled to Mexico, and traveled to

7 Germany in an effort to flee to Armenia.

8 C. USE OF INTERSTATE WIRES

9 4. On or about June 23, 2020, within the Central District of
10 California, and elsewhere, for the purpose of executing the scheme to
11 defraud described above, defendant ABELYAN transmitted and caused the
12 transmission of approximately $10,000 from the SBA to the Cargo Fleet
13 Rentals Account by means of wire communication in interstate
14 commerce.
15

28
4
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 5 of 9 Page ID #:524

1 COUNTS TWO AND THREE

2 [18 U.S.C. §§ 1014, 2(b)]

3 5. The Grand Jury incorporates paragraphs 1, 3, and 4 of this

4 First Superseding Indictment here.

5 6. On or about the dates set forth below, in Los Angeles

6 County, within the Central District of California, and elsewhere,

7 defendant ABELYAN knowingly made, and willfully caused to be made,

8 false statements for the purpose of influencing the actions of a

9 financial institution, namely, United Wholesale Mortgage, in

10 connection with an application to obtain a $336,000 loan, as

11 specifically described below:

12 COUNT DATE DOCUMENT FALSE STATEMENTS
13 TWO 08/09/2021 Letter Defendant ABELYAN falsely
stated that (1) the 5832
14 Account was used for his
consulting business;
15 (2) the falsified bank
statements he included with
16 the letter were statements
for the 5832 Account; and
17 (3) the circled deposits on
the falsified bank
18 statements were “business
related deposits”
19 THREE 08/16/2021 Uniform Defendant ABELYAN falsely
Residential Loan stated that he (1) was
20 Application employed by “Vardges
Abelyan Consulting,”
21 (2) received a gross
monthly income of
22 $5,527.34; and (3) had
worked for “Vardges Abelyan
23 Consulting” for six years
and six months
24

28
5
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 6 of 9 Page ID #:525

1 COUNT FOUR

2 [18 U.S.C. § 1028A(a)(1)]

3 7. The Grand Jury incorporates paragraphs 1, 3, 4, and 6 of

4 this First Superseding Indictment here.

5 8. On or about August 9, 2021, in Los Angeles County, within

6 the Central District of California, and elsewhere, defendant ABELYAN

7 knowingly possessed, transferred, and used, without lawful authority,

8 means of identification that defendant ABELYAN knew belonged to

9 another person, that is, the name of victim M.A., during and in

10 relation to the offense of False Statements to a Financial

11 Institution, a felony violation of Title 18, United States Code,

12 Section 1014, as charged in Count Two of this First Superseding

13 Indictment.

28
6
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 7 of 9 Page ID #:526

1 COUNT FIVE

2 [18 U.S.C. § 1028A(a)(1)]

3 9. The Grand Jury incorporates paragraphs 1, 3, 4, and 6 of

4 this First Superseding Indictment here.

5 10. On or about August 16, 2021, in Los Angeles County, within

6 the Central District of California, and elsewhere, defendant ABELYAN

7 knowingly possessed, transferred, and used, without lawful authority,

8 means of identification that defendant ABELYAN knew belonged to

9 another person, that is, the name of victim M.A., during and in

10 relation to the offense of False Statements to a Financial

11 Institution, a felony violation of Title 18, United States Code,

12 Section 1014, as charged in Count Three of this First Superseding

13 Indictment.

7
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 8 of 9 Page ID #:527

1 FORFEITURE ALLEGATION

2 [18 U.S.C. § 982]

3 11. Pursuant to Rule 32.2(a) of the Federal Rules of Criminal

4 Procedure, notice is hereby given that the United States of America

5 will seek forfeiture as part of any sentence, pursuant to Title 18,

6 United States Code, Section 982(a)(2), in the event of defendant

7 VARDGES ABELYAN’s conviction of the offenses set forth in any of

8 Counts One through Five of this First Superseding Indictment.

9 12. Defendant ABELYAN, if so convicted, shall forfeit to the

10 United States of America the following:

11 a. All right, title and interest in any and all property,

12 real or personal, constituting, or derived from, any proceeds

13 obtained, directly or indirectly, as a result of the offense; and

14 b. To the extent such property is not available for

15 forfeiture, a sum of money equal to the total value of the property

16 described in subparagraph (a).

17 3. Pursuant to Title 21, United States Code, Section 853(p),

18 as incorporated by Title 18, United States Code, Section 982(b), the

19 defendant, if so convicted, shall forfeit substitute property, up to

20 the total value of the property described in the preceding paragraph

21 if, as the result of any act or omission of the defendant, the

22 property described in the preceding paragraph, or any portion

23 thereof: (a) cannot be located upon the exercise of due diligence;

24 (b) has been transferred, sold to or deposited with a third party;

25 (c) has been placed beyond the jurisdiction of the court; (d) has

26 //

27 //

28
8
Case 2:23-cr-00285-ODW Document 66 Filed 08/01/24 Page 9 of 9 Page ID #:528

1 been substantially diminished in value; or (e) has been commingled

2 with other property that cannot be divided without difficulty.

4 A TRUE BILL
5

6 V
Foreperson
7

8 E. MARTIN ESTRADA
United States Attorney
9

11 MACK E. JENKINS
Assistant United States Attorney
12 Chief, Criminal Division
13 BRETT A. SAGEL
Assistant United States Attorney
14 Chief, Corporate and
Securities Fraud Strike Force
15
ALEXANDER B. SCHWAB
16 Assistant United States Attorney
Deputy Chief, Corporate and
17 Securities Fraud Strike Force
18

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