Hollywood Man Pleads Guilty to $3.8M COVID-19 Benefits Fraud
A Hollywood Hills man, Gevork George Dagliyan, 50, pleaded guilty on Friday to defrauding government programs of over $3.8 million in COVID-19 relief funds. The fraud involved shell companies and false applications for loans designed to support businesses impacted by the pandemic.
Details of the Fraud
Dagliyan admitted to one count of wire fraud in Los Angeles federal court. Sentencing is scheduled for September 11, where he faces up to 20 years in federal prison. According to court documents, the scheme took place between May 2020 and September 2021, targeting the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, both administered by the U.S. Small Business Administration (SBA).
The fraudulent applications were submitted on behalf of 17 shell companies, including Ultimate Software Solutions, Dagliyan Co., and Ramzes Enterprises Inc. Dagliyan falsely inflated the number of employees, revenue, and business expenses for each company. He also falsely claimed that the loan funds were used for eligible costs when, in reality, they were used for personal expenses.
Financial Impact
Dagliyan and his ex-wife, identified as “Individual 1” in court documents, received approximately $3.33 million in PPP loans and nearly $539,200 in EIDL funds. The total amount defrauded is estimated to be over $3.8 million. The programs were created to provide economic relief to businesses struggling during the COVID-19 pandemic U.S. Small Business Administration (SBA) | Open Data.
Legal Proceedings
The case was prosecuted in Los Angeles federal court. Separately, Dagliyan was also involved in a debt collection case filed by SOFI Lending Corp in Los Angeles County Superior Court on March 9, 2023 SOFI LENDING CORP VS GEVORK DAGLIYAN – UniCourt.
This case highlights the ongoing efforts to prosecute individuals who exploited government relief programs during the COVID-19 pandemic Hollywood Man Pleads Guilty to $3.8M COVID Benefits Fraud.