LOS ANGELES — A North Hollywood man was sentenced Friday to 70 months in federal prison for fraud schemes that caused nearly $5 million in losses to federal COVID-19 relief and small-business lending programs, prosecutors said.
U.S. District Judge Cynthia Valenzuela sentenced Sarkis Sarkisyan, 38.
He pleaded guilty April 29 to two counts of wire fraud and one count of transactional money laundering involving a fraudulent $786,457 Paycheck Protection Program loan and a subsequent $25,000 laundering transaction.
Quick fact checklist
Defendant: Sarkis Sarkisyan, 38, North Hollywood.
Sentence: 70 months; Oct. 9, 2026.
Judge: Cynthia Valenzuela.
Guilty plea: April 29; two wire fraud counts, one money laundering count.
Fraud proceeds: $4,866,457 received; another $1 million attempted.
Restitution: Dec. 4 hearing; amount pending.
Investigators also found that Sarkisyan orchestrated fraud involving more than $4 million in Small Business Administration Preferred Lender Program loans and attempted to obtain two $500,000 Economic Injury Disaster Loans.
According to court records, Sarkisyan fabricated businesses, payrolls, IRS tax forms and financial records to secure federally backed loans. He and others involved in the schemes moved the proceeds through shell companies and associates to conceal the money’s origin.
The schemes yielded $4,866,457 in fraudulent loan proceeds, most of which ultimately benefited Sarkisyan personally, prosecutors said.
In their sentencing memorandum, prosecutors said Sarkisyan fabricated businesses to make them appear eligible for assistance and “exploited the goodwill of lenders and taxpayers.”
A restitution hearing is scheduled for Dec. 4.