Los Angeles Man Sentenced to Two Years for $3.8M Pandemic Loan Scam

A Los Angeles federal judge sentenced a 50-year-old man to two years in prison on Friday for extracting millions of dollars in pandemic relief funds through fake businesses. Gevork George Dagliyan accepted the penalty for defrauding federal lenders during the height of the economic crisis.

The scheme began in May 2020 and continued through September 2021. During that period, Dagliyan filed 17 applications for government-backed loans. He represented several entities, including Ultimate Software Solutions, Dagliyan Co., and Ramzes Enteprises Inc., as active businesses with specific staffing and revenue levels. Court records show he knew these companies were shells with no such operational details.

Dagliyan targeted the Paycheck Protection Program and the Economic Injury Disaster Loan program. Both initiatives provided capital to companies hit by the pandemic. He submitted documents to Chase Bank and the U.S. Small Business Administration that overstated employee counts and business expenses. He also claimed loan forgiveness by stating the money covered eligible operational costs. Prosecutors noted he actually spent the funds on personal items.

The man pleaded guilty to one federal count of wire fraud in February. Federal prosecutors identified a second accomplice, referred to in filings as Individual 1, who participated in the scheme. Together, the pair secured $3.33 million in PPP loans and nearly $539,200 in EIDL funds. The total amount extracted exceeded $3.8 million.

In addition to the prison term, the court ordered Dagliyan to pay more than $3.26 million in fines and restitution. The U.S. Attorney’s Office confirmed the financial penalty on Friday. The sentencing concludes the federal case against Dagliyan in Los Angeles.