Armen Hovanesian, a 32-year-old employee at NASA’s Jet Propulsion Laboratory in Pasadena, has admitted to defrauding pandemic-era protection programs intended to support businesses and individuals struggling due to the economic impact of COVID-19. Hovanesian, a cost-control and budget-planning resource analyst for the federally funded research lab, has agreed to plead guilty to using fraudulently obtained funds to support an illegal marijuana cultivation operation.
Between June and October of 2020, Hovanesian submitted three loan applications to the Economic Injury Disaster Loan Program for businesses he was reportedly operating. These businesses were eligible for the low-interest financing provided by the program to small businesses, renters, and homeowners affected by disasters, including the COVID-19 pandemic.
In his plea agreement, Hovanesian admitted to making false and fraudulent statements during the loan application process. He lied about his businesses’ previous year’s revenue and made misleading statements about what he planned to use the loan funds for. Despite affirming that he would use the money to sustain his businesses, Hovanesian used the funds instead to pay off a real estate debt and support his illegal marijuana cultivation, according to the United States Department of Justice (DOJ).
Hovanesian received a total of $151,900 through his fraudulent scheme. He is now pleading guilty to one felony count of wire fraud, which carries a maximum sentence of 20 years in federal prison. He is expected to appear in court on August 11.
As personal injury bloggers, we often discuss the repercussions of fraud and the significance of ensuring that funds meant for those in need are utilized appropriately. This incident serves as a reminder of the importance of maintaining integrity in times of crisis, and the severe consequences for those who exploit such situations. We commend the efforts of the authorities in ensuring justice is served in these cases.