Indictment — United States v. Vardges Abelyan, Central District of California (Document 15)

Summary

A grand jury indictment in United States v. Vardges Abelyan, Case 2:23-cr-00285-ODW, in the United States District Court for the Central District of California, filed June 8, 2023 as Document 15. Counts One and Two charge wire fraud under 18 U.S.C. § 1343 for SBA transfers of approximately $10,000 on 06/23/2020 and approximately $149,900 on 06/26/2020 of EIDL funds to the Cargo Fleet Rentals Account, alleging false statements about the company's employees and revenues. Counts Three and Four charge false statements to United Wholesale Mortgage in connection with a $336,000 loan, and Counts Five and Six charge aggravated identity theft under 18 U.S.C. § 1028A(a)(1). The forfeiture allegation lists real property, approximately $131,313.35 in bank funds and approximately $27,885 in currency and gold coins.

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“Indictment — United States v. Vardges Abelyan, Central District of California (Document 15).” Original at ecf.cacd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-usa-v-abelyan-dkt-15-c-d-cal-10ba640b5f/, SHA-256 9e7ef8b6f3ea6000f983486009018ebe9c3f3522b8d4ca5faa2858624a9863a3.

Full text

Case 2:23-cr-00285-ODW Document 15 Filed 06/08/23 Page 1 of 9 Page ID #:42

3 6/8/2023
4 CD

7
UNITED STATES DISTRICT COURT
8
FOR THE CENTRAL DISTRICT OF CALIFORNIA
9
October 2022 Grand Jury
10
UNITED STATES OF AMERICA, CR 2:23-cr-00285-ODW
11
Plaintiff, I N D I C T M E N T
12
v. [18 U.S.C. § 1343: Wire Fraud; 18
13 U.S.C. § 1014: False Statements to
VARDGES ABELYAN, a Financial Institution; 18 U.S.C.
14 § 1028A(a)(1): Aggravated Identity
Defendant. Theft; 18 U.S.C. § 982: Criminal
15 Forfeiture]
16

17 The Grand Jury charges:
18 COUNTS ONE AND TWO
19 [18 U.S.C. § 1343]
20 A. INTRODUCTORY ALLEGATIONS
21 1. At times relevant to this Indictment:
22 The Defendant and Relevant Entities
23 a. Defendant VARDGES ABELYAN was the sole owner of Cargo
24 Fleet Rentals Inc, a California corporation.
25 b. Defendant ABELYAN maintained at JPMorgan Chase Bank,
26 N.A., a checking account in the name of Cargo Fleet Rentals Inc (the
27 “Cargo Fleet Rentals Account”), a checking account in his own name
28
Case 2:23-cr-00285-ODW Document 15 Filed 06/08/23 Page 2 of 9 Page ID #:43

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 15 Filed 06/08/23 Page 3 of 9 Page ID #:44

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 June 26, 2020, 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 15 Filed 06/08/23 Page 4 of 9 Page ID #:45

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

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

3 C. USE OF INTERSTATE WIRES

4 4. On or about the dates set forth below, within the Central
5 District of California, and elsewhere, for the purpose of executing
6 the scheme to defraud described above, defendant ABELYAN transmitted
7 and caused the transmission of the following items by means of wire
8 communication in interstate commerce:
9 COUNT DATE INTERSTATE WIRING
10 ONE 06/23/2020 Transfer of approximately $10,000 from the SBA
to the Cargo Fleet Rentals Account
11

12 TWO 06/26/2020 Transfer of approximately $149,900 from the SBA
to the Cargo Fleet Rentals Account
13

28
4
Case 2:23-cr-00285-ODW Document 15 Filed 06/08/23 Page 5 of 9 Page ID #:46

1 COUNTS THREE AND FOUR

2 [18 U.S.C. §§ 1014, 2(b)]

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

4 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
THREE 08/09/2021 Letter Defendant ABELYAN falsely
13 stated that (1) the 5832
Account was used for his
14 consulting business;
(2) the falsified bank
15 statements he included with
the letter were statements
16 for the 5832 Account; and
(3) the circled deposits on
17 the falsified bank
statements were “business
18 related deposits”
FOUR 08/16/2021 Uniform Defendant ABELYAN falsely
19 Residential Loan stated that he (1) was
Application employed by “Vardges
20 Abelyan Consulting,”
(2) received a gross
21 monthly income of
$5,527.34; and (3) had
22 worked for “Vardges Abelyan
Consulting” for six years
23 and six months
24

28
5
Case 2:23-cr-00285-ODW Document 15 Filed 06/08/23 Page 6 of 9 Page ID #:47

1 COUNT FIVE

2 [18 U.S.C. § 1028A(a)(1)]

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

4 this 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 Three of this Indictment.

28
6
Case 2:23-cr-00285-ODW Document 15 Filed 06/08/23 Page 7 of 9 Page ID #:48

1 COUNT SIX

2 [18 U.S.C. § 1028A(a)(1)]

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

4 this 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 Four of this Indictment.

28
7
Case 2:23-cr-00285-ODW Document 15 Filed 06/08/23 Page 8 of 9 Page ID #:49

1 FORFEITURE ALLEGATION

2 [18 U.S.C. § 982]
3 1. 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 the
7 defendant’s conviction of the offenses set forth in any of Counts One
8 through Six of this Indictment.
9 2. The defendant, if so convicted, shall forfeit to the United
10 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
14 including, but not limited to, the following:
15 i. The real property located at 12720 Burbank
16 Boulevard, Unit 118, North Hollywood, California 91607;
17 ii. The real property located at 3921 Mayfield
18 Avenue, Glendale, California 91214;
19 iii. Approximately $131,313.35 in bank funds seized by
20 the Government; and
21 iv. Approximately $27,885 in U.S. currency and gold
22 coins seized by law enforcement officers during a search of defendant
23 at Los Angeles International Airport on May 18, 2023; and
24 b. To the extent such property is not available for
25 forfeiture, a sum of money equal to the total value of the property
26 described in subparagraph (a).
27 3. Pursuant to Title 21, United States Code, Section 853(p),
28 as incorporated by Title 18, United States Code, Section 982(b), the
8
Case 2:23-cr-00285-ODW Document 15 Filed 06/08/23 Page 9 of 9 Page ID #:50

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

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

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

4 property described in the preceding paragraph, or any portion

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

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

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

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

9 with other property that cannot be divided without difficulty.

11 A TRUE BILL
12

13 /S/
Foreperson
14

15 E. MARTIN ESTRADA
United States Attorney
16

18 MACK E. JENKINS
Assistant United States Attorney
19 Chief, Criminal Division
20 RANEE A. KATZENSTEIN
Assistant United States Attorney
21 Chief, Major Frauds Section
22 ALEXANDER B. SCHWAB
Assistant United States Attorney
23 Deputy Chief, Major Frauds Section
24

28
9

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