A local man has been indicted by a federal grand jury on allegations he worked to defraud the Small Business Administration (SBA) and the Pandemic Unemployment Assistance (PUA) program.
Zaven Yeghiazaryan, who has addresses in both Newtown Township and the Croydon section of Bristol Township, was indicted recently on charges of money laundering, aggravated identity theft, conspiracy to commit wire fraud, and wire fraud.
The defendant was released on bail by federal Magistrate Judge Carol Sandra Moore Wells and ordered to turn in his passport, restricted to his home, keep employed, not leave the area without court permission, and other conditions. To post the $3 million bail, he put up two homes in Newtown Township and the property in Croydon, according to court records.
According to the indictment, Yeghiazaryan allegedly orchestrated a scheme to fraudulently obtain Economic Injury Disaster Loans (EIDL) under the CARES Act, which was enacted in response to the COVID-19 pandemic.
Between April 2020 and August 2020, he allegedly submitted false EIDL applications on behalf of several shell companies, including Biowaste Solutions, Inc., Zaui LLC, and Uni-Tek US LLC, the indictment said.
The applications falsely claimed business activity and inflated financial figures, which led to the disbursement of roughly $216,000 in federal relief funds, according to authorities.
In one of the applications, it was reported Biowaste had several hundred thousands of dollars in revenue and 12 employees. However, the business did not have any employees and only had revenues of a few thousand dollars, according to court papers.
The indictment further alleges that Yeghiazaryan diverted these funds into personal bank accounts and used them for unauthorized purchases rather than for the intended business purposes outlined in the loan agreements.
In addition to the EIDL fraud, Yeghiazaryan is also accused of participating in a separate scheme to defraud the Pandemic Unemployment Assistance program.
From May 2020 to September 2021, he allegedly conspired with others to file fraudulent unemployment claims, using the identities of individuals who were not eligible for the benefits, the grand jury found.
The scheme reportedly resulted in the fraudulent distribution of over $100,000 in unemployment benefits, authorities said.
The indictment also alleges Yeghiazaryan’s involvement in laundering the proceeds of a healthcare fraud scheme, in which he provided advice on concealing illicit funds and engaged in financial transactions designed to disguise the origins of the money.
The prosecutors have filed papers related to the forfeiture of assets, according to court filings.
An attorney listed for Yeghiazaryan did not return a request for comment.
In court papers, federal authorities layout a large investigation involving IRS Criminal Investigations, U.S. Customs and Border Protection Homeland Security Investigations, U.S. Department of State Diplomatic Security Service, the Social Security Administration Office of Inspector General, U.S. Health and Human Services Office of Inspector, U.S. Department of Transportation Office of Inspector General, U.S. Department of Labor Office of Inspector General, and U.S. Postal Inspection Service.
The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
