For the second week in a row, the Department of Homeland Security carried out a dramatic, early-morning raid in Los Angeles targeting transnational organized crime rings. This week’s bust netted fourteen arrests from an Armenian fraud ring that investigators say stole $30 million in COVID relief and Small Business loans meant to help taxpaying Americans.

“If you are taking money from the government that doesn’t belong to you, your door could be the next one that we’re hitting,” said U.S. Attorney for California’s Central District, Bill Essayli.

Investigators say McGrayan is the brains of the crime ring that applied to steal $47 million in federal funds and got away with around $30 million. Court documents read that the suspects allegedly used phony documents including fake bank and tax papers to create multiple shell companies that applied for the federal funds.

“That’s $47 million in taxpayer funds that was meant to go to good use, and these transnational criminal organizations are exploiting the American people’s good will and using it for their personal gain,” said John Pasciucco, Acting Special Agent in Charge for HSI Los Angeles.  

— (California state Assembly)

After the fourteen suspects were arrested, they were brought to an unmarked, specially designated processing center to be booked. Law enforcement seized approximately $20,000 in cash, two money-counting machines, paper cash bands or currency straps in denominations of $2,000 and $10,000, multiple cell phones, multiple laptops, two loaded semi-automatic 9mm handguns, and boxes of 9mm ammunition.

The suspects are charged with a range of crimes from conspiracy, wire and bank fraud to money laundering.

Authorities say some of the money was spent on houses and luxury goods, other amounts were sent to Armenia, making it harder for the U.S. to trace.