United States Attorney David Metcalf announced that Zaven Yeghiazaryan, 44, from Newtown, Pennsylvania, pleaded guilty before the Honorable Gerald J. Pappert to 13 counts of an indictment. These charges include conspiracy, health care fraud, wire fraud, and money laundering.
The crimes involve a series of illegal schemes that Mr. Yeghiazaryan executed between January 2020 and April 2024. During this time, he used shell companies—businesses that only exist on paper—and false identities to commit fraud. His schemes targeted several government programs designed to help people and businesses during the COVID-19 pandemic.
Fraud Targeted COVID Relief and Medicaid Programs
The fraud offenses were aimed mainly at two government programs that provided relief during the pandemic. The first was the Small Business Administration’s Economic Injury Disaster Loan program. This program gave loans to small businesses struggling because of COVID-19.
The second was the Pandemic Unemployment Assistance program, which helped workers who lost jobs or income because of the pandemic.
Instead of using these programs honestly, Mr. Yeghiazaryan submitted false claims to get money he was not entitled to. He used fake identities and created fake companies to hide what he was doing. These lies helped him steal funds meant to support people and businesses in need.
Darrell Devonish’s $900K Food Program Fraud Ends in 41-Month Sentence
In addition to these COVID relief programs, Mr. Yeghiazaryan also took part in a scheme to defraud Medicaid. Medicaid is a government program that helps low-income individuals pay for health care. By submitting false claims, he unlawfully obtained money from this program too.
Investigation and Legal Action
The case involved a large investigation by many government agencies. These included the Social Security Administration’s Office of the Inspector General, the Internal Revenue Service’s Criminal Investigation unit, the United States Postal Inspection Service, Homeland Security Investigations, the Department of Health and Human Services’ Office of Inspector General, the United States Department of Labor, the Department of Transportation’s Office of the Inspector General, and the State Department.
This wide-ranging investigation uncovered the fraud and led to the charges against Mr. Yeghiazaryan. The case is being prosecuted by Assistant United States Attorney Mary E. Crawley and Special Assistant United States Attorney Megan Curran.
Because Mr. Yeghiazaryan pleaded guilty to all 13 counts, he faces a maximum possible sentence of 230 years in prison. He also faces a three-year period of supervised release after prison. On top of this, he could be fined $3,250,000, required to pay $334,905 in restitution (which means returning stolen money), and forfeit any property or money tied to the crimes.
The sentencing hearing is set for September 4, 2025, where the judge will decide the exact punishment.
