Row079 1132046 Richard Ayvazyan
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A grand jury indictment in United States v. Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan and Tamara Dadyan, Case 2:20-cr-00579-SVW, in the U.S. District Court for the Central District of California, filed November 17, 2020 as Document 32. It charges conspiracy under 18 U.S.C. § 1349, wire fraud under 18 U.S.C. § 1343, bank fraud under 18 U.S.C. § 1344(2) and aggravated identity theft under 18 U.S.C. § 1028A(a)(1), with criminal forfeiture allegations. The indictment describes the Paycheck Protection Program and the Economic Injury Disaster Loan program and lists bank accounts it says each defendant controlled. It alleges that between March 2020 and July 2020 the defendants submitted at least 35 PPP and EIDL applications seeking at least $5.6 million and received at least $4.6 million, and sets out overt acts. The 29-page document ends with the forfeiture allegations.
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FILED
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 1 of 29 Page
CLERK, U.S.IDISTRICT
#:105COURT
11/17/2020
DM
CENTRAL DISTRICT OF CALIFORNIA
1 BY: ___________________ DEPUTY
2
3
4
5
6
7
8 UNITED STATES DISTRICT COURT
9 FOR THE CENTRAL DISTRICT OF CALIFORNIA
10 October 2020 Grand Jury
11 UNITED STATES OF AMERICA, CR 2:20-cr-00579-SVW
12 Plaintiff, I N D I C T M E N T
13 v. [18 U.S.C. § 1349: Conspiracy to
Commit Bank Fraud and Wire Fraud;
14 RICHARD AYVAZYAN, 18 U.S.C. § 1343: Wire Fraud; 18
aka “Richard Avazian” and U.S.C. § 1344(2): Bank Fraud; 18
15 “Iuliia Zhadko,” U.S.C. § 1028A(a)(1): Aggravated
MARIETTA TERABELIAN, Identity Theft; 18 U.S.C. §§ 981,
16 aka “Marietta Abelian” and 982, 1028 and 28 U.S.C. § 2461(c):
“Viktoria Kauichko,” Criminal Forfeiture]
17 ARTUR AYVAZYAN,
aka “Arthur Ayvazyan,” and
18 TAMARA DADYAN,
19 Defendants.
20
21 The Grand Jury charges:
22 COUNT ONE
23 [18 U.S.C. § 1349]
24 [ALL DEFENDANTS]
25 A. INTRODUCTORY ALLEGATIONS
26 At times relevant to this Indictment:
27
28
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 2 of 29 Page ID #:106
1 THE DEFENDANTS
2 1. Defendant RICHARD AYVAZYAN, also known as (“aka”) “Richard
3 Avazian” and “Iuliia Zhadko” (“R. AYVAZYAN”), was a resident of
4 Encino, California, within the Central District of California.
5 2. Defendant MARIETTA TERABELIAN, aka “Marietta Abelian” and
6 “Viktoria Kauichko,” was a resident of Encino, California, within the
7 Central District of California. Defendant TERABELIAN and defendant
8 R. AYVAZYAN were married.
9 3. Defendant ARTUR AYVAZYAN, aka “Arthur Ayvazyan”
10 (“A. AYVAZYAN”), was a resident of Encino, California, within the
11 Central District of California. Defendant A. AYVAZYAN and defendant
12 R. AYVAZYAN were brothers.
13 4. Defendant TAMARA DADYAN was a resident of Encino,
14 California, within the Central District of California. Defendant
15 DADYAN and defendant A. AYVAZYAN were married.
16 THE PAYCHECK PROTECTION PROGRAM
17 5. The Coronavirus Aid, Relief, and Economic Security
18 (“CARES”) Act was a federal law enacted in or about March 2020 that
19 was designed to provide emergency financial assistance to Americans
20 suffering economic harm as a result of the COVID-19 pandemic. One
21 form of assistance provided by the CARES Act was the authorization of
22 United States taxpayer funds in forgivable loans to small businesses
23 for job retention and certain other expenses, through a program
24 referred to as the Paycheck Protection Program (“PPP”).
25 6. In order to obtain a PPP loan, a qualifying business was
26 required to submit a PPP loan application signed by an authorized
27 representative of the business. The PPP loan application required
28 the small business (through its authorized representative) to
2
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 3 of 29 Page ID #:107
1 acknowledge the program rules and make certain affirmative
2 certifications in order to be eligible to obtain the PPP loan. One
3 such certification required the applicant to affirm that “[t]he [PPP
4 loan] funds w[ould] be used to retain workers and maintain payroll or
5 make mortgage interest payments, lease payments, and utility
6 payments.” The applicant (through its authorized representative) was
7 also required to acknowledge that “I understand that if the funds are
8 used for unauthorized purposes, the federal government may pursue
9 criminal fraud charges.” In the PPP loan application, the applicant
10 was required to state, among other things, its: (a) average monthly
11 payroll expenses; and (b) number of employees. These figures were
12 used to calculate the amount of money the small business was eligible
13 to receive under the PPP. In addition, the applicant was required to
14 provide documentation showing its payroll expenses.
15 7. A business’s PPP loan application was received and
16 processed, in the first instance, by a participating financial
17 institution. If a PPP loan application was approved, the
18 participating financial institution would fund the PPP loan using its
19 own monies.
20 8. PPP loan proceeds were required to be used by the business
21 on certain permissible expenses, namely, payroll costs, interest on
22 mortgages, rent, and utilities. The PPP allowed the interest and
23 principal on the PPP loan to be entirely forgiven if the business
24 spent the loan proceeds on these expenses within a designated period
25 of time and used at least a minimum amount of the PPP loan proceeds
26 towards payroll expenses.
27
28
3
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1 THE ECONOMIC INJURY DISASTER LOAN PROGRAM
2 9. The Economic Injury Disaster Loan Program (“EIDL”) was a
3 United States Small Business Administration (“SBA”) program that
4 provided low-interest financing to small businesses, renters, and
5 homeowners in regions affected by declared disasters.
6 10. The CARES Act authorized the SBA to provide EIDL loans of
7 up to $2 million to eligible small businesses experiencing
8 substantial financial disruption due to the COVID-19 pandemic.
9 11. To obtain an EIDL loan, a qualifying business was required
10 to submit an application to the SBA and provide information about the
11 business’s operations, such as the number of employees, gross
12 revenues for the 12-month period preceding the disaster, and cost of
13 goods sold in the 12-month period preceding the disaster. In the
14 case of EIDL loans for COVID-19 relief, the 12-month period was the
15 12-month period from January 31, 2019, to January 31, 2020. The
16 applicant was also required to certify that all of the information in
17 the application was true and correct to the best of the applicant’s
18 knowledge.
19 12. EIDL loan applications were submitted directly to the SBA
20 and processed by the agency with support from a government
21 contractor. The amount of the loan, if the application was approved,
22 was determined based, in part, on the information provided by the
23 applicant about employment, revenue, and cost of goods sold, as
24 described in paragraph 11 above. Any funds issued under an EIDL loan
25 were issued directly by the SBA.
26 13. EIDL loan funds could be used for payroll expenses, sick
27 leave, production costs, and business obligations, such as debts,
28 rent, and mortgage payments. If the applicant also obtained a loan
4
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1 under the PPP, the EIDL loan funds could not be used for the same
2 purpose as the PPP loan funds.
3 RELEVANT LENDING INSTITUTIONS
4 14. Lenders A, B, C, D, and E were financial institutions
5 insured by the Federal Deposit Insurance Company (“FDIC”) that were
6 approved SBA lenders of PPP loans.
7 BANK ACCOUNTS CONTROLLED BY THE DEFENDANTS
8 15. Banks 1, 2, 3, 4, 5, and 6 were financial institutions
9 insured by the FDIC.
10 16. Defendant R. AYVAZYAN controlled and was a signatory (in
11 his legal name or using one of his aliases) on the following bank
12 accounts:
13 a. A business checking account at Bank 1 in the name of
14 “Timeline Transport, Inc.” (the “Timeline Transport Bank 1 Account”);
15 b. A business checking account at Bank 2 in the name of
16 “Inception Ventures Inc.” (the “Inception Ventures Bank 2 Account”);
17 and
18 c. A business checking account at Bank 3 in the name of
19 “Iuliia Zhadko dba Top Quality Contracting” (the “TQC Bank 3
20 Account”).
21 17. Defendant TERABELIAN controlled and was a signatory (in her
22 legal name or using one of her aliases) on the following bank
23 accounts:
24 a. A personal checking account at Bank 2 in the name of
25 TERABELIAN (the “Terabelian Bank 2 Account”); and
26 b. A business checking account at Bank 2 in the name of
27 “Runyan Tax Service Inc.” (the “Runyan Tax Bank 2 Account”).
28
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1 18. Defendant A. AYVAZYAN controlled and was a signatory (in
2 his legal name or using his alias) on the following bank accounts:
3 a. A business checking account at Bank 2 in the name of
4 “Allstate Towing and Transport LLC” (the “Allstate Towing Bank 2
5 Account”); and
6 b. A business checking account at Bank 4 in the name of
7 “Allstate Towing and Transport LLC” (the “Allstate Towing Bank 4
8 Account”).
9 19. Defendant DADYAN controlled and was a signatory on the
10 following bank accounts:
11 a. A business checking account at Bank 3 in the name of
12 “Secureline Realty and Funding, Inc.” (the “Secureline Realty Bank 3
13 Account”);
14 b. A business checking account at Bank 5 in the name of
15 “ABC Realty Advisors, Inc.” (the “ABC Realty Bank 5 Account”); and
16 c. A business checking account at Bank 6 in the name of
17 “Secureline Realty and Funding, Inc.” (the “Secureline Realty Bank 6
18 Account”).
19 B. THE OBJECTS OF THE CONSPIRACY
20 20. Beginning no later than in or around March 2020 and
21 continuing until at least in or around July 2020, in Los Angeles
22 County, within the Central District of California, and elsewhere,
23 defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and DADYAN,
24 conspired with one another and with others known and unknown to the
25 Grand Jury to commit: (a) wire fraud, in violation of Title 18,
26 United States Code, Section 1343; (b) bank fraud, in violation of
27 Title 18, United States Code, Section 1344(2).
28
6
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1 C. THE MANNER AND MEANS OF THE CONSPIRACY
2 21. The objects of the conspiracy were to be carried out, and
3 were carried out, in substance, as follows:
4 a. Defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and
5 DADYAN, together with other coconspirators, used and caused to be
6 used, stolen, fictitious, or synthetic identities of individuals to
7 submit fraudulent applications for PPP and EIDL loans;
8 b. Defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and
9 DADYAN, together with other coconspirators, would use, and cause to
10 be used, stolen, fictitious, and synthetic business names to submit
11 fraudulent applications for PPP and EIDL loans;
12 c. Defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and
13 DADYAN, together with other coconspirators, would make, and cause to
14 be made, false statements to the SBA and financial institutions in
15 connection with the fraudulent applications for PPP and EIDL loans,
16 including false representations regarding the number of employees to
17 whom the companies had paid wages and false certifications that the
18 loans would be used for permissible business purposes.
19 d. Defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and
20 DADYAN, together with other coconspirators, would electronically
21 submit, and cause to be submitted, false and fictitious documents to
22 the SBA and financial institutions in support of the fraudulent PPP
23 and EIDL loan applications, including false or fictitious tax
24 documents, payroll records, bank records, and identification
25 documents.
26 e. Defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and
27 DADYAN, together with other coconspirators, would direct that PPP and
28 EIDL loan proceeds be deposited into bank accounts that defendants
7
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1 R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and DADYAN, and their
2 coconspirators controlled.
3 f. Defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and
4 DADYAN, and their coconspirators, would use the fraudulently obtained
5 PPP and EIDL loan proceeds for their own personal benefit and for the
6 benefit of their coconspirators, including for expenses prohibited
7 under the requirements of the PPP and EIDL programs, such as the
8 purchase of residential properties at Address 1 in Tarzana,
9 California (“Residential Property 1”), and Address 2 in Glendale,
10 California (“Residential Property 2”).
11 22. As part of the conspiracy, between in or around March 2020
12 and in or around July 2020, defendants R. AYVAZYAN, TERABELIAN,
13 A. AYVAZYAN, and DADYAN, together with other coconspirators,
14 submitted and caused the submission of at least 35 fraudulent PPP and
15 EIDL loan applications seeking a total of at least $5.6 million in
16 PPP and EIDL proceeds from the SBA and financial institutions and
17 received a total of at least $4.6 million in PPP and EIDL loan
18 proceeds from the SBA and financial institutions.
19 D. OVERT ACTS
20 23. On or about the following dates, in furtherance of the
21 conspiracy and to accomplish its objects, defendants R. AYVAZYAN,
22 TERABELIAN, A. AYVAZYAN, and DADYAN, together with other
23 conspirators, committed and willfully caused others to commit the
24 following overt acts, among others, within the Central District of
25 California:
26 Secureline Realty PPP Loans
27 Overt Act No. 1: On or about April 22, 2020, defendant DADYAN
28 submitted and caused to be submitted to Lender D an application in
8
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1 the name of Secureline Realty and Funding, Inc. (“Secureline Realty”)
2 seeking a PPP loan in the amount of $122,838, which application:
3 (a) falsely represented that Secureline Realty had eight employees,
4 including employees for whom it had paid wages and payroll taxes; and
5 (b) falsely certified Secureline Realty would use the loan proceeds
6 for permissible business purposes.
7 Overt Act No. 2: On or about April 22, 2020, defendant DADYAN
8 submitted and caused to be submitted to Lender D false and fraudulent
9 documents in support of the Secureline Realty PPP loan application,
10 including the following:
11 a. A fake Internal Revenue Service (“IRS”) Form 940 for
12 2019, which falsely represented that Secureline Realty had paid
13 $589,623 to its employees in 2019.
14 b. A fake IRS Form 941 for the first quarter of 2020,
15 which falsely represented that Secureline Realty had paid $151,842 to
16 its employees during that period.
17 Overt Act No. 3: On or about May 7, 2020, defendant DADYAN
18 caused Lender D to wire approximately $122,838 in proceeds from the
19 Secureline Realty PPP loan to Secureline Realty Bank 3 Account.
20 Overt Act No. 4: On or about May 9, 2020, defendant DADYAN
21 submitted and caused to be submitted to Lender E an application in
22 the name of Secureline Realty seeking a PPP loan in the amount of
23 $137,500, which application: (a) falsely represented that Secureline
24 Realty had eight employees, including employees for whom it had paid
25 wages and payroll taxes; and (b) falsely certified Secureline Realty
26 would use the loan proceeds for permissible business purposes.
27
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1 Overt Act No. 5: On or about May 11, 2020, defendant DADYAN
2 caused Lender E to wire approximately $137,500 in proceeds from the
3 Secureline Realty PPP loan to Secureline Realty Bank 6 Account.
4 Overt Act No. 6: On or about May 27, 2020, defendant DADYAN
5 caused a check for approximately $136,000, drawn on Secureline Realty
6 Bank 6 Account and comprised in substantial part of the PPP loan
7 proceeds for Secureline Realty, to be deposited into ABC Realty Bank
8 5 Account.
9 Overt Act No. 7: On or about June 12, 2020, defendant DADYAN
10 caused approximately $120,010, which in substantial part came from
11 the PPP loan proceeds for Secureline Realty, to be withdrawn from
12 Secureline Realty Bank 3 Account and subsequently caused
13 approximately $120,000 to be deposited to ABC Realty Bank 5 Account.
14 Overt Act No. 8: On or about June 17, 2020, defendant DADYAN
15 caused approximately $200,000 to be wired from ABC Realty Bank 5
16 Account to Inception Ventures Bank 2 Account, for which defendant
17 R. AYVAZYAN was the sole signatory.
18 Overt Act No. 9: On or about June 22, 2020, defendant
19 R. AYVAZYAN caused approximately $435,000, which in part came from
20 the approximately $200,000 in PPP loan funds defendant R. AYVAZYAN
21 received from defendant DADYAN, to be wired from Inception Ventures
22 Bank 2 Account to Escrow Company 1 to be used to as part of the
23 $3,250,000 purchase price for Residential Property 1, which was
24 purchased in the names of defendants R. AYVAZYAN and TERABELIAN.
25 Top Quality Contracting PPP Loan
26 Overt Act No. 10: On or about April 30, 2020, defendant
27 R. AYVAZYAN, using the name of M.Z., submitted and caused to be
28
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 11 of 29 Page ID #:115
1 submitted to Lender B an application in the name of Top Quality
2 Contracting (“TQC”), seeking a PPP loan in the amount of $130,000.
3 Overt Act No. 11: On or about April 30, 2020, in connection
4 with the TQC PPP loan application, defendant R. AYVAZYAN submitted
5 and caused to be submitted to Lender B a fake copy of M.Z.’s
6 California driver’s license and a false IRS Form 940 purportedly
7 prepared and filed by M.Z.
8 Overt Act No. 12: On or about May 8, 2020, defendant
9 R. AYZAYAN caused Lender B to wire approximately $130,000 in proceeds
10 from the TQC PPP loan to TQC Bank 3 Account, which listed defendant
11 R. AYVAZYAN’s alias “Iuliia Zhadko” and M.Z. as the only signatories.
12 Allstate Towing PPP Loan
13 Overt Act No. 13: On or about May 2, 2020, defendant
14 A. AYVAZYAN submitted and caused to be submitted to Lender C an
15 application in the name of Allstate Towing and Transport LLC
16 (“Allstate Towing”) seeking a PPP loan in the amount of $124,000,
17 which application: (a) falsely represented that Allstate Towing had
18 11 employees, including employees for whom it had paid wages and
19 payroll taxes; and (b) falsely certified Allstate Towing would use
20 the loan proceeds for permissible business purposes.
21 Overt Act No. 14: On or about May 2, 2020, defendant
22 A. AYVAZYAN submitted and caused to be submitted to Lender C false
23 and fraudulent documents in support of the Allstate Towing PPP loan
24 application, including the following:
25 a. A fake IRS Form 940 for 2019, which falsely
26 represented that Allstate Towing had paid $546,000 to its employees
27 in 2019.
28
11
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1 b. A fake IRS Form 941 for the first quarter of 2020,
2 which falsely represented that Allstate Towing had paid $136,500 to
3 its employees during that period.
4 Overt Act No. 15: On or about May 5, 2020, defendant
5 A. AYVAZYAN caused Lender C to wire approximately $124,000 in
6 proceeds from the Allstate Towing PPP loan to Allstate Towing Bank 4
7 Account.
8 Overt Act No. 16: On or about May 21, 2020, defendant
9 A. AYVAZYAN caused approximately $80,000, which in substantial part
10 came from the Allstate Towing PPP loan proceeds, to be wired from
11 Allstate Towing Bank 4 Account to Allstate Towing Bank 2 Account.
12 Overt Act No. 17: On or about June 3, 2020, defendant
13 A. AYVAZYAN caused approximately $93,000, which in substantial part
14 came from the Allstate Towing PPP loan proceeds, to be wired from
15 Allstate Towing Bank 2 Account to Escrow Company 1 to be used as part
16 of the $3,250,000 purchase price for Residential Property 1, which
17 was purchased in the names of defendants R. AYVAZYAN and TERABELIAN.
18 G&A Diamonds and Redline Auto Collision Loans
19 Overt Act No. 18: On or about May 3, 2020, defendants
20 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
21 submitted and caused to be submitted to Lender C an application in
22 the name of G&A Diamonds seeking a PPP loan in the amount of
23 approximately $113,750.
24 Overt Act No. 19: On or about May 5, 2020, defendants
25 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
26 caused Lender C to wire approximately $113,750 in proceeds from the
27 G&A Diamonds PPP loan to G&A Diamonds’ Bank 4 account (the “G&A
28 Diamonds Bank 4 Account”).
12
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1 Overt Act No. 20: On or about June 2, 2020, defendants
2 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
3 submitted and caused to be submitted to the SBA an application in the
4 name of Redline Auto Collision Inc. (“Redline Auto”) seeking an EIDL
5 loan in the amount of approximately $150,000.
6 Overt Act No. 21: On or about June 8, 2020, defendants
7 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
8 caused the SBA to wire approximately $149,900 in proceeds from the
9 Redline Auto EDIL loan to Redline Auto’s Bank 5 account (the “Redline
10 Auto Bank 5 Account”).
11 Overt Act No. 22: On or about June 14, 2020, defendants
12 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
13 submitted and caused to be submitted to the SBA an application in the
14 name of G&A Diamonds seeking an EIDL loan in the amount of
15 approximately $150,000.
16 Overt Act No. 23: On or about June 16, 2020, defendants
17 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
18 caused the SBA to wire approximately $149,900 to G&A Diamonds Bank 4
19 Account.
20 Overt Act No. 24: On or about June 17, 2020, defendants
21 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
22 caused approximately $150,000, comprised in substantial part of the
23 proceeds from the Redline Auto EIDL loan, to be wired from Redline
24 Auto Bank 5 Account to Terabelian Bank 2 Account.
25 Overt Act No. 25: On or about June 19, 2020, defendants
26 R. AYVAZYAN and TERABELIAN, together with other coconspirators,
27 caused approximately $100,000, which in substantial part came from
28
13
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1 the proceeds from the G&A Diamonds PPP and EIDL loans, to be wired
2 from G&A Diamonds Bank 4 Account to Terabelian Bank 2 Account.
3 Overt Act No. 26: On or about June 22, 2020, defendants
4 R. AYVAZYAN and TERABELIAN caused approximately $565,000, which in
5 substantial part came from PPP and EIDL loan funds obtained from the
6 SBA and financial institutions in the name of G&A Diamonds and
7 Redline Auto, to be wired from Terabelian Bank 2 Account to Escrow
8 Company 1 to be used as part of the $3,250,000 purchase price for
9 Residential Property 1, which was purchased in the names of
10 defendants R. AYVAZYAN and TERABELIAN.
11 Timeline Transport EIDL Loan
12 Overt Act No. 27: On or about June 15, 2020, defendant
13 R. AYVAZYAN, using the alias “Iuliia Zhadko,” submitted and caused to
14 be submitted to the SBA an application in the name of Timeline
15 Transport, Inc. (“Timeline Transport”) seeking an EIDL loan in the
16 amount of approximately $150,000, which application: (a) falsely
17 represented that “Iuliia Zhadko” had owned Timeline Transport since
18 2016 and was the company’s Chief Executive Officer; (b) falsely
19 represented that Timeline Transport had 22 employees, including
20 employees for whom it had paid wages and payroll taxes; and
21 (c) falsely certified Timeline Transport would use the loan proceeds
22 for permissible business purposes.
23 Overt Act No. 28: On or about June 22, 2020, defendant
24 R. AYVAZYAN caused the SBA to wire approximately $149,900 in proceeds
25 from the Timeline Transport EIDL loan to Timeline Transport Bank 1
26 Account.
27 Overt Act No. 29: On or about June 24, 2020, defendant
28 R. AYVAZYAN caused approximately $110,000, which in substantial part
14
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1 came from the Timeline Transport EIDL loan proceeds, to be wired from
2 Timeline Transport Bank 1 Account to Escrow Company 1 to be used as
3 part of the $3,250,000 purchase price for Residential Property 1,
4 which was purchased in the names of defendants R. AYVAZYAN and
5 TERABELIAN.
6 Runyan Tax Service PPP Loan
7 Overt Act No. 30: On or about July 13, 2020, defendant
8 R. AYVAZYAN and defendant TERABELIAN, using her alias “Viktoria
9 Kauichko,” submitted and caused to be submitted to Lender A an
10 application in the name of Runyan Tax Service, Inc. (“Runyan Tax
11 Service”) seeking a PPP loan in the amount of $276,653, which
12 application: (a) falsely represented that Runyan Tax Service had 22
13 employees, including employees for whom it had paid wages and payroll
14 taxes; and (b) falsely certified Runyan Tax Service would use the
15 loan proceeds for permissible business purposes.
16 Overt Act No. 31: On or about July 13, 2020, defendants
17 R. AYVAZYAN and TERABELIAN submitted and caused to be submitted to
18 Lender A false and fraudulent documents in support of the Runyan Tax
19 Service PPP loan application, including a fraudulent California
20 driver’s license purportedly belonging to “Viktoria Kauichko,” and a
21 federal tax filing representing “Viktoria Kauichko” as Runyan Tax
22 Service’s President, even though defendants R. AYVAZYAN and
23 TERABELIAN knew at the time that “Viktoria Kauichko” was a fake and
24 synthetic identity.
25 Overt Act No. 32: On or about July 21, 2020, defendants
26 R. AYVAZYAN and TERABELIAN caused Lender A to wire approximately
27 $276,653 in proceeds from the Runyan Tax Service PPP loan to Runyan
28 Tax Bank 2 Account.
15
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1 Overt Act No. 33: On or about July 23, 2020, defendants
2 R. AYVAZYAN and TERABELIAN caused approximately $238,614, which in
3 substantial part came from the Runyan Tax Service PPP loan proceeds,
4 to be transferred from Runyan Tax Bank 2 Account to Escrow Company 2
5 to be used as part of the approximately $1,000,000 purchase price for
6 Residential Property 2, which was purchased in the name of defendant
7 R. AYVAZYAN’s alias “Iuliia Zhadko.”
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 17 of 29 Page ID #:121
1 COUNTS TWO THROUGH SEVEN
2 [18 U.S.C. §§ 1343, 2(a)]
3 [ALL DEFENDANTS]
4 24. The Grand Jury re-alleges paragraphs 1 through 19 and 21
5 through 23 of this Indictment here.
6 A. THE SCHEME TO DEFRAUD
7 25. Beginning no later than in or around March 2020 and
8 continuing until at least in or around July 2020, in Los Angeles
9 County, within the Central District of California, and elsewhere,
10 defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and DADYAN, together
11 with others known and unknown to the Grand Jury, knowingly and with
12 intent to defraud, devised, participated in, and executed a scheme to
13 defraud the SBA and financial institutions as to material matters,
14 and to obtain moneys, funds, assets, and other property owned by and
15 in the custody and control of the SBA and financial institutions by
16 means of material false and fraudulent pretenses, representations,
17 and promises, and the concealment of material facts.
18 26. The fraudulent scheme operated and was carried out, in
19 substance, as described in paragraphs 21 through 23 of this
20 Indictment.
21 B. USE OF THE WIRES
22 27. On or about the dates set forth below, in Los Angeles
23 County, within the Central District of California, and elsewhere, for
24 the purpose of executing the above-described scheme to defraud,
25 defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and DADYAN, together
26 with others known and unknown to the Grand Jury, aiding and abetting
27 each other, transmitted and caused the transmission of the following
28
17
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 18 of 29 Page ID #:122
1 items by means of wire and radio communication in interstate and
2 foreign commerce:
3 COUNT DATE INTERSTATE WIRE TRANSMISSION
4 TWO May 5, 2020 Transfer of approximately $124,000 in PPP
loan proceeds from Lender C, sent by
5 means of an interstate wire, into
6 Allstate Towing Bank 4 Account
THREE May 8, 2020 Transfer of approximately $130,000 in PPP
7 loan proceeds from Lender B, sent by
means of an interstate wire, into TQC
8 Bank 3 Account
FOUR May 11, 2020 Transfer of approximately $137,500 in PPP
9 loan proceeds from Lender E, sent by
10 means of an interstate wire, into
Secureline Realty Bank 6 Account
11 FIVE June 16, 2020 Transfer of approximately $149,900 in
EIDL loan proceeds from the SBA, sent by
12 means of an interstate wire, into G&A
Diamonds Bank 4 Account
13 SIX June 17, 2020 Transfer of approximately $150,000 in
14 EIDL loan proceeds from the Redline Auto
Bank 5 Account, sent by means of an
15 interstate wire, to Terabelian Bank 2
Account
16 SEVEN June 22, 2020 Transfer of approximately $149,900 in
EIDL loan proceeds from the SBA, sent by
17 means of an interstate wire, into
18 Timeline Transport Bank 1 Account
19
20
21
22
23
24
25
26
27
28
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 19 of 29 Page ID #:123
1 COUNTS EIGHT THROUGH ELEVEN
2 [18 U.S.C. §§ 1344(2), 2]
3 [ALL DEFENDANTS]
4 28. The Grand Jury re-alleges paragraphs 1 through 19 and 21
5 through 23 of this Indictment here.
6 A. THE SCHEME TO DEFRAUD
7 29. Beginning no later than in or around March 2020 and
8 continuing until at least in or around July 2020, in Los Angeles
9 County, within the Central District of California, and elsewhere,
10 defendants R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and DADYAN, together
11 with others known and unknown to the Grand Jury, knowingly and with
12 intent to defraud, devised, participated in, executed, and attempted
13 to execute a scheme to obtain moneys, funds, credits, assets, and
14 other property owned by and in the custody and control of federally-
15 insured financial institutions by means of material false and
16 fraudulent pretenses, representations, and promises, and the
17 concealment of material facts.
18 30. The fraudulent scheme operated and was carried out, in
19 substance, as described in paragraphs 21 through 23 of this
20 Indictment.
21 B. EXECUTIONS OF THE SCHEME
22 31. On or about the following dates, in Los Angeles County,
23 within the Central District of California, and elsewhere, defendants
24 R. AYVAZYAN, TERABELIAN, A. AYVAZYAN, and DADYAN, together with
25 others known and unknown to the Grand Jury, aiding and abetting each
26 other, committed and willfully caused others to commit the following
27 acts, each of which constituted an execution of the fraudulent
28 scheme:
19
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 20 of 29 Page ID #:124
1 COUNT DATE ACT
2 EIGHT April 30, 2020 Submission of application for PPP loan
to Lender B in the name of TQC
3 NINE May 2, 2020 Submission of application for PPP loan
to Lender C in the name of Allstate
4 Towing
5 TEN May 9, 2020 Submission of application for PPP loan
to Lender E in the name of Secureline
6 Realty
ELEVEN July 13, 2020 Submission of application for PPP loan
7 to Lender A in the name of Runyan Tax
Service
8
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 21 of 29 Page ID #:125
1 COUNT TWELVE
2 [18 U.S.C. §§ 1028A(a)(1), 2(b)]
3 [Defendant R. AYVAZYAN]
4 32. The Grand Jury re-alleges paragraphs 1 through 19 and 21
5 through 23 of this Indictment here.
6 33. Beginning no later than in or around March 2020 and
7 continuing until at least in or around July 2020, in Los Angeles
8 County, within the Central District of California, and elsewhere,
9 defendant R. AYVAZYAN knowingly transferred, possessed, and used, and
10 willfully caused to be transferred, possessed, and used, without
11 lawful authority, a means of identification that defendant
12 R. AYVAZYAN knew belonged to another person, namely, the name of
13 M.Z., during and in relation to bank fraud, a felony violation of
14 Title 18, United States Code, Section 1344(2), as charged in Count
15 Eight of this Indictment.
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 22 of 29 Page ID #:126
1 FORFEITURE ALLEGATION ONE
2 [18 U.S.C. § 982]
3 34. 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), and Title 28, United States
7 Code, Section 2461(c), in the event of any defendant’s conviction of
8 the offense set forth in Count One of this Indictment.
9 35. The defendant 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, certain real property referred to
15 herein as Residential Property 1 located in the County of Los
16 Angeles, State of California, APN 2176-029-031, and certain real
17 property referred to herein as Residential Property 2 located in the
18 County of Los Angeles, State of California, APN 5663-036-033; and
19 b. To the extent such property is not available for
20 forfeiture, a sum of money equal to the total value of the property
21 described in subparagraph (a).
22 36. Pursuant to Title 21, United States Code, Section 853(p),
23 as incorporated by Title 18, United States Code, Section 982(b) and
24 Title 28, United States Code, Section 2461(c), any defendant so
25 convicted shall forfeit substitute property, up to the total value of
26 the property described in the preceding paragraph if, as the result
27 of any act or omission of said defendant, the property described in
28 the preceding paragraph, or any portion thereof: (a) cannot be
22
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 23 of 29 Page ID #:127
1 located upon the exercise of due diligence; (b) has been transferred,
2 sold to or deposited with a third party; (c) has been placed beyond
3 the jurisdiction of the court; (d) has been substantially diminished
4 in value; or (e) has been commingled with other property that cannot
5 be divided without difficulty.
6
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 24 of 29 Page ID #:128
1 FORFEITURE ALLEGATION TWO
2 [18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c)]
3 37. Pursuant to Rule 32.2 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 981(a)(1)(C) and Title 28, United States
7 Code, Section 2461(c), in the event of any defendant’s conviction of
8 the offenses set forth in any of Counts Two through Seven of this
9 Indictment.
10 38. The defendant, if so convicted, shall forfeit to the United
11 States of America the following:
12 a. all right, title, and interest in any and all
13 property, real or personal, constituting, or derived from, any
14 proceeds traceable to the offenses, including, but not limited to,
15 certain real property referred to herein as Residential Property 1
16 located in the County of Los Angeles, State of California, APN 2176-
17 029-031, and certain real property referred to herein as Residential
18 Property 2 located in the County of Los Angeles, State of California,
19 APN 5663-036-033; and
20 b. to the extent such property is not available for
21 forfeiture, a sum of money equal to the total value of the property
22 described in subparagraph (a).
23 39. Pursuant to Title 21, United States Code, Section 853(p),
24 as incorporated by Title 28, United States Code, Section 2461(c), the
25 defendant, if so convicted, shall forfeit substitute property, up to
26 the value of the property described in the preceding paragraph if, as
27 the result of any act or omission of the defendant, the property
28 described in the preceding paragraph or any portion thereof (a)
24
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 25 of 29 Page ID #:129
1 cannot be located upon the exercise of due diligence; (b) has been
2 transferred, sold to, or deposited with a third party; (c) has been
3 placed beyond the jurisdiction of the court; (d) has been
4 substantially diminished in value; or (e) has been commingled with
5 other property that cannot be divided without difficulty.
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 26 of 29 Page ID #:130
1 FORFEITURE ALLEGATION THREE
2 [18 U.S.C. § 982]
3 40. 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), and Title 28, United States
7 Code, Section 2461(c), in the event of any defendant’s conviction of
8 the offenses set forth in any of Counts Eight through Eleven of this
9 Indictment.
10 41. Any defendant so convicted shall forfeit to the United
11 States of America the following:
12 a. all right, title and interest in any and all property,
13 real or personal, constituting, or derived from, any proceeds
14 obtained, directly or indirectly, as a result of the offense,
15 including, but not limited to, certain real property referred to
16 herein as Residential Property 1 located in the County of Los
17 Angeles, State of California, APN 2176-029-031, and certain real
18 property referred to herein as Residential Property 2 located in the
19 County of Los Angeles, State of California, APN 5663-036-033; and
20 b. to the extent such property is not available for
21 forfeiture, a sum of money equal to the total value of the property
22 described in subparagraph (a).
23 42. Pursuant to Title 21, United States Code, Section 853(p),
24 as incorporated by Title 18, United States Code, Section 982(b) and
25 Title 28, United States Code, Section 2461(c), any defendant so
26 convicted shall forfeit substitute property, up to the total value of
27 the property described in the preceding paragraph if, as the result
28 of any act or omission of said defendant, the property described in
26
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 27 of 29 Page ID #:131
1 the preceding paragraph, or any portion thereof: (a) cannot be
2 located upon the exercise of due diligence; (b) has been transferred,
3 sold to or deposited with a third party; (c) has been placed beyond
4 the jurisdiction of the court; (d) has been substantially diminished
5 in value; or (e) has been commingled with other property that cannot
6 be divided without difficulty.
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Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 28 of 29 Page ID #:132
1 FORFEITURE ALLEGATION FOUR
2 [18 U.S.C. §§ 982 and 1028 and 28 U.S.C. § 2461(c)]
3 43. Pursuant to Rule 32.2 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, Sections 982 and 1028 and Title 28, United States
7 Code, Section 2461(c) in the event of the conviction of defendant
8 RICHARD AYVAZYAN, also known as (“aka”) “Richard Avazian,” and
9 “Iuliia Zhadko,” of the offense set forth in Count Twelve of this
10 Indictment.
11 44. The defendant, if so convicted, shall forfeit to the United
12 States of America the following:
13 a. all right, title and interest in any and all property,
14 real or personal, constituting, or derived from, any proceeds
15 obtained, directly or indirectly, as a result of the offense,
16 including, but not limited to, certain real property referred to
17 herein as Residential Property 1 located in the County of Los
18 Angeles, State of California, APN 2176-029-031, and certain real
19 property referred to herein as Residential Property 2 located in the
20 County of Los Angeles, State of California, APN 5663-036-033;
21 b. any personal property used or intended to be used to
22 commit the offense; and
23 c. to the extent such property is not available for
24 forfeiture, a sum of money equal to the total value of the property
25 described in subparagraphs (a) and (b).
26 45. Pursuant to Title 21, United States Code, Section 853(p),
27 as incorporated by Title 18, United States Code, Sections 982(b) and
28 1028(g), the defendant, if so convicted, shall forfeit substitute
28
Case 2:20-cr-00579-SVW Document 32 Filed 11/17/20 Page 29 of 29 Page ID #:133
1 property, up to the total value of the property described in the
2 preceding paragraph if, as the result of any act or omission of the
3 defendant, the property described in the preceding paragraph, or any
4 portion thereof: (a) cannot be located upon the exercise of due
5 diligence; (b) has been transferred, sold to or deposited with a
6 third party; (c) has been placed beyond the jurisdiction of the
7 court; (d) has been substantially diminished in value; or (e) has
8 been commingled with other property that cannot be divided without
9 difficulty.
10 A TRUE BILL
11
12 /S/
Foreperson
13
NICOLA T. HANNA
14 United States Attorney
15
16 BRANDON D. FOX
Assistant United States Attorney
17 Chief, Criminal Division
18 RANEE A. KATZENSTEIN
Assistant United States Attorney
19 Chief, Major Frauds Section
20 DANIEL A. KAHN
Acting Chief, Fraud Section
21 Criminal Division
United States Department of Justice
22
KRISTEN A. WILLIAMS
23 Assistant United States Attorney
Deputy Chief, Major Frauds Section
24
JULIAN L. ANDRÉ
25 Assistant United States Attorney
Major Frauds Section
26
CHRISTOPHER FENTON
27 Trial Attorney, Fraud Section
Criminal Division
28 United States Department of Justice
29
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