Government’s Sentencing Position for Defendant Arsen Terzyan, No. 2:25-cr-00456 (C.D. Cal., May 18, 2026)

Summary

The government's sentencing position for defendant Arsen Terzyan in United States v. Terzyan, No. CR 25-456-MWC, in the United States District Court for the Central District of California, dated and filed May 18, 2026 as Document 108 and signed by Assistant United States Attorney Mark Aveis, for a hearing set for June 5, 2026. It recommends the high end of the Guidelines range, 51 months' imprisonment, three years of supervised release, agreed restitution of $1,166,670 to the U.S. Small Business Administration and a $200 special assessment. The government concurs in the PSR's net offense level of 21 and Criminal History Category II, for a range of 41-51 months. It argues the offenses and the defendant's history are aggravating, citing a June 2016 federal identity theft conviction and the misuse of more than $500,000 for a marijuana grow business.

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“Government’s Sentencing Position for Defendant Arsen Terzyan, No. 2:25-cr-00456 (C.D. Cal., May 18, 2026).” Original at ecf.cacd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sentencing-memorandum-usa-v-terzyan-dkt-108-c-d-cal-4a99153236/, SHA-256 20916cb70303f8ae4cfe06bd243900d15beb44a98f86bb8d86c7106980fce2aa.

Full text

Case 2:25-cr-00456-MWC Document 108 Filed 05/18/26 Page 1 of 4 Page ID #:375

1 TODD BLANCHE
Acting Attorney General
2 BILAL A. ESSAYLI
First Assistant United States Attorney
3 JENNIFER L. WAIER
Assistant United States Attorney
4 Chief Assistant United States Attorney &
Chief, Criminal Division
5 MARK AVEIS (Cal. Bar No. 107881)
Assistant United States Attorney
6 Major Frauds Section
1100 United States Courthouse
7 312 North Spring Street
Los Angeles, California 90012
8 Telephone: (213) 894-4477
Facsimile: (213) 894-0141
9 E-mail: mark.aveis@usdoj.gov
Attorneys for Plaintiff
10 UNITED STATES OF AMERICA

11 UNITED STATES DISTRICT COURT

12 FOR THE CENTRAL DISTRICT OF CALIFORNIA

13 UNITED STATES OF AMERICA, No. CR 25-456-MWC

14 Plaintiff, GOVERNMENT’S SENTENCING POSITION
FOR DEFENDANT ARSEN TERZYAN
15 v.
Hearing date: June 5, 2026
16 ARSEN TERZYAN, Time: 10:00 a.m.

17 Defendant.

18
19 Plaintiff United States of America, by and through its counsel
20 of record, hereby submits its sentencing position for defendant Arsen
21 Terzyan (“defendant”).
22 I. RECOMMENDATION
23 The government recommends that defendant be sentenced to the
24 high end of the applicable Guidelines, 51 months’ imprisonment,
25 followed by a three-year period of supervised release; and ordered to
26 pay agreed-upon restitution of $1,166,670, payable to the U.S. Small
27 Business Administration, a special assessment of $200, and to comply
28 with such other terms or conditions as the Court deems appropriate.
Case 2:25-cr-00456-MWC Document 108 Filed 05/18/26 Page 2 of 4 Page ID #:376

1 II. PRESENTENCE REPORT (“PSR”)

2 The government concurs in the factual basis in the PSR disclosed

3 on May 4, 2026 (Dkt. 106). The government also concurs in the

4 Probation Officer’s correct calculation of the Sentencing Guidelines

5 (PSR at ¶¶ 36-55) and notes that the net Guideline level in the PSR

6 is one level lower than that agreed upon by the parties. (Cf. PSR,

7 ¶ 55 with Plea Agreement, Dkt. 95, at 8:25-26.) Defendant should

8 receive the benefit of the lower net Guideline level, 21, as

9 determined by the Probation Officer. (PSR, ¶ 55.) Defendant’s

10 criminal history is Category II (PSR, ¶ 61), for a Guideline range of

11 41-51 months. (See, Recommendation Letter, Dkt. 105, ¶ 1.)

12 III. SENTENCING FACTORS

13 Under 18 U.S.C. § 3553(a), the nature and circumstances of the

14 offenses are aggravating factors. Defendant’s stipulated factual

15 basis, that defendant affirmed under oath during his plea colloquy,

16 shows that defendant committed serious financial crimes by

17 fraudulently obtaining taxpayer funds intended to help the country

18 weather the Covid-19 pandemic. In addition to fraudulently

19 justifying his need for such funds, he admittedly misused them for

20 frivolous ends. Although the Congressional appropriation for

21 pandemic stimulus was large, it was not unlimited and was designed to

22 provide benefits to those who honorably sought funds. Plainly that

23 was not so here. Defendant also fraudulently took advantage of

24 pandemic stimulus funds specifically designed to sustain restaurants,

25 whose employees were especially compromised, by lying about his

26 finances and, again, misusing proceeds, this time more than $500,000

27 for a marijuana grow business. Defendant admitted that he knew at

2
Case 2:25-cr-00456-MWC Document 108 Filed 05/18/26 Page 3 of 4 Page ID #:377

1 all relevant times that taxpayers’ funds were not intended as venture

2 capital. (Plea Agreement, Dkt. 95, 20:8-13.)

3 Defendant’s history and characteristics are aggravating factors.

4 The totality of the sentencing information, including defendant’s

5 financial crimes history, shows that defendant is an opportunistic,

6 recidivist fraudster who misled at least two other judges in this

7 district into believing that defendant had reformed.

8 Specifically, defendant was convicted as recently as June 2016

9 of multiple federal felonies for identity theft offenses. Defendant

10 and his co-conspirators stole dozens of others’ personal identifying

11 information by placing electronic capturing devices on gas pumps.

12 (See PSR, ¶ 60.) At sentencing, defendant argued for leniency as a

13 devoted father who was concerned about the negative impact of his

14 conduct on his children. (U.S. v. Terzyan, CR 15-621-R, Dkt. 284 at

15 3-4.) Defendant told the sentencing court that he had “learned the

16 hard lessons of my wrongful actions. I know I will never put myself

17 in this position again.” (Id., at Ex. A.) Defendant was placed on

18 three years’ supervised release following 36 months’ imprisonment.

19 (See Docket Cover in CR 15-621-R.)

20 Approximately 20 months into his 36-month term of supervised

21 release, defendant sought, pro se, early termination of supervised

22 release by telling another Court that “I am zero risk to offend for

23 the rest of my life.” (U.S. v. Terzyan, CR 15-621-R, Dkt. 378 at

24 2:13.) The Court granted defendant’s motion on May 29, 2020;

25 defendant committed the offense in count one of the indictment in

26 this case approximately seven months later. (Cf., U.S. v. Terzyan,

27 Dkt. 380 and defendant’s plea agreement here, Dkt. 95 at at 21.)

3
Case 2:25-cr-00456-MWC Document 108 Filed 05/18/26 Page 4 of 4 Page ID #:378

1 In support of leniency here, defendant provided letters of

2 support that indicate that “he has started the journey of reforming

3 his life and wants to continue living a righteous and honest

4 lifestyle . . . .” (PSR, ¶ 76.) Similarly contradictory, defendant

5 claimed that he self-treated his anxiety from his prior case by using

6 marijuana and that he beat any addiction by enrollment in the RDAP

7 program while in prison. (PSR, ¶ 84.) However, he admitted in his

8 factual basis in this case that he misused more than a half million

9 dollars in taxpayer funds to operate a marijuana grow operation.

10 The need for just punishment, deterrence, respect for the law,

11 and to protect the public are aggravating factors. Defendant shows

12 little to no evidence of a good faith effort to respect the law, not

13 to commit crimes, or not to scheme with others to steal.

14 In the final analysis, a sentence of 51 months’ imprisonment is

15 sufficient but not greater than necessary to accomplish the goals of

16 the applicable sentencing statutes and Guidelines.

17 Dated: May 18, 2026 Respectfully submitted,

18 TODD BLANCHE
Acting Attorney General
19 BILAL A. ESSAYLI
First Assistant United States
20 Attorney
JENNIFER L. WAIER
21 Assistant United States Attorney
Chief Assistant United States
22 Attorney & Chief, Criminal Division

23
/s/
24 MARK AVEIS
Assistant United States Attorney
25
Attorneys for Plaintiff
26 UNITED STATES OF AMERICA

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