Los Angeles: suspect arrested in alleged $17.4 million fraud and identity theft ring

In the United States, a man was arrested in Los Angeles as part of a federal case targeting a group accused of exploiting elderly homeowners to obtain loans backed by their properties.

A major alleged real estate fraud scheme has been uncovered in Los Angeles. According to U.S. federal authorities, multiple suspects were arrested in a case involving a group accused of stealing the identities of elderly property owners and using their homes as collateral to obtain millions of dollars in private loans.

Among those arrested is Armen Vardevaryan, 55, also known as Gonch. He is one of eleven defendants named in a 15-count federal indictment. Prosecutors allege that the group obtained personal identifying information belonging to elderly victims, secured title reports for their residential properties, and then solicited hard money loans from private lenders by falsely claiming that the loans were backed by the victims’ homes.

Federal authorities say the targeted properties were located in Santa Monica, Hollywood, Hollywood Hills, Westwood and Chinatown. Investigators allege the ring attempted to steal 17.4 million dollars in total and actually obtained about 6 million dollars.

The case also involves allegations of fabricated financial documents, fraudulently notarized paperwork and money moving through multiple businesses and funnel accounts. The defendants are facing charges that include wire fraud, aggravated identity theft and money laundering.

If convicted, the defendants could face up to 20 years in federal prison for each fraud- and money laundering-related count, in addition to mandatory consecutive prison time for certain aggravated identity theft charges. The case is another reminder that elderly homeowners remain a prime target for organized financial schemes built on stolen identity data and property fraud.