Alleged scammer bilks $20M
Van Nuys man arrested on eight counts of fraud targeted at Armenian
residents.
By Tania Chatila (GLENDALE PRESS – Published: October 7, 2005)
PASADENA — A 43-year-old Van Nuys man was arrested Thursday on eight felony
counts of federal mail fraud in connection with an alleged investment scam
that bilked about $20 million from mostly Armenian-Americans, many of whom
were from Glendale and Burbank, said officials with the United States
Attorney’s Office.
Melkon Gharakhanian, whose alias was Mike Garian, allegedly used his
Glendale-based company, National Investment Enterprises Inc. to collect $20
million from 1999 to 2001 from investors who thought their money was going
toward the purchase of technological security systems, United States
Attorney’s Office spokesman Thom Mrozek said.
Many of those victims — 200 of them — were from the Glendale-Burbank area,
officials said.
“He had a storefront in Glendale and solicited a lot of business through
word of mouth in the community,” Mrozek said.
Gharakhanian, who was arrested at a Pasadena post office, allegedly used the
mail to send investors false monthly statements about the company and its
purchases of shares, he said.
“This is mail fraud, and it’s investment fraud, and that’s pretty serious,”
said Renee Focht, spokeswoman for the United States Postal Inspection
Service.
In 2001, after allegedly using investor funds for personal use and to pay
for the company’s operating expenses, National Investment Enterprises Inc.
flopped, Mrozek said.
“Basically the company collapsed, as ponzi schemes usually do when the
requests for withdrawals exceeds the amount of money [the company has],” he
said. “Basically he’s collecting money and he’s not making investments as
promised, but he’s telling people he’s making all this money for them.”
Investors lost about $5 million when the company collapsed, Mrozek said.
Gharakhanian could face up to 40 years in federal prison if convicted on all
eight counts, he said.
Gharakhanian will appear today in United States District Court in Los
Angeles.
From: Emil Lazarian | Ararat NewsPress