California Attorney General Rob Bonta announced today the sentencing of the final four individuals out of a total of twelve defendants involved in a large-scale mortgage fraud scheme. The scheme, which included identity theft and money laundering, resulted in an estimated loss of $15 million over several years. Charges from the April 2021 indictment included conspiracy, mortgage fraud, grand theft, identity theft, forgery, filing false or forged documents, and money laundering.
"These individuals have been held accountable for a pattern of disregard for the law and willingness to go as far as stealing the identities of the deceased just to further their scheme," said Attorney General Bonta. "Thank you to the Los Angeles Police Department and the Federal Housing Finance Agency, Office of Inspector General for their work to put an end to an extensive six-year fraud scheme that resulted in the theft of an estimated $15 million. Those who cheat the system to line their own pockets will be held accountable for their crimes."
Los Angeles Police Department Assistant Chief Blake Chow commented on the case: "I want to thank the officers of LAPD, FHFA-OIG, and Attorney General Bonta for this significant arrest and prosecution. To victimize individuals and families is shocking. These crimes violate feelings of security and safety for all victims and their families."
Jay Johnson, Special Agent-in-Charge at FHFA-OIG Western Region stated: "The Federal Housing Finance Agency Office of Inspector General is committed to holding accountable those who waste, steal or abuse resources regulated by FHFA. We are proud to have partnered with LAPD and California Attorney’s General Office in this case."
Between 2014 and 2020, defendants used stolen identities to obtain mortgage and green loans wired into controlled bank accounts. They exploited companies like Ygrene Energy Fund and Renew Funding that provide financing for energy-efficient home improvements. Additionally, they secured mortgage loans from conventional banks using false identities.
The ringleaders Tamara Dadyan and Richard Ayvazyan received sentences of 12 years and 10 years in prison respectively; Arthur Ayvazyan was sentenced to seven years. The remaining defendants received local custody sentences ranging from six months to eleven months along with probationary terms.
This multi-year investigation was led by LAPD with significant assistance from FHFA-OIG. The California Department of Justice's Special Prosecutions Section prosecuted the case.
DOJ’s Special Prosecution Section handles complex criminal cases related primarily to financial frauds such as securities, mortgage frauds; public corruption; tax fraud; counterfeiting; human trafficking among others often collaborating with federal and local authorities on multijurisdictional criminal activities.