Man gets three years for scam
By Tania Chatila, The Leader

Burbank Leader, CA
June 17 2006

GLENDALE — A United States District judge sentenced a 43-year-old
Van Nuys man to 37 months in prison Wednesday for an investment scam
that bilked about $20 million from about 200 people, many of whom
are from Glendale and Burbank, said officials with the United States
Attorney’s Office.

Melkon Gharakhanian, whose alias was Mike Garian, pleaded guilty
in January to one count of felony federal mail fraud, United States
Attorney’s Office spokesman Thom Mrozek said.

"The court imposed an appropriate sentence," Assistant United States
Atty. Michael R. Wilner said. "Mr. Gharakhanian will not be able to
defraud other victims for a long time, and it’s an appropriate ending
to this case."

Gharakhanian used his Glendale-based company, National Investment
Enterprises Inc., to collect $20 million from 1999 to 2001 from
investors — mostly Armenian-Americans — who thought their money
was going toward the purchase of technological security systems,
Mrozek said.

Gharakhanian, who was arrested at a Pasadena post office in October,
mailed investors false monthly statements about the company and its
purchases of shares, he said.

National Investment Enterprises Inc. went under in 2001 after
Gharakhanian used investor funds for personal use and to pay for the
company’s operating expenses, Mrozek said.

Gharakhanian admitted that investors lost anywhere from $2.5 million
to $10 million when the company collapsed, Mrozek said.

"Investment fraud continues to be a very pressing problem throughout
Southern California for reasons we can’t fully explain," Mrozek said.