A North Hollywood man was sentenced earlier this week to 70 months in federal prison for his role in a series of fraud schemes that caused nearly $5 million in losses to federal COVID-19 relief and small business lending programs.
Sarkis Sarkisyan, 38, of North Hollywood, was sentenced by United States District Judge Cynthia Valenzuela.
Sarkisyan pleaded guilty on April 29 to two counts of wire fraud and one count of transactional money laundering arising from his fraudulent application for a $786,457 Paycheck Protection Program (PPP) loan and a subsequent $25,000 laundering transaction. In addition, the government’s investigation revealed that he also orchestrated additional fraud involving Small Business Administration (SBA) Preferred Lender Program loans totaling more than $4 million, as well as attempted to obtain two Economic Injury Disaster Loans of $500,000 each.
According to court records, Sarkisyan fabricated businesses, payrolls, IRS tax forms, and financial records to obtain federally backed loans intended to support legitimate small businesses during the COVID-19 pandemic so they could make payroll and pay rent. He and his co-schemers then transferred the proceeds through shell companies and associates to conceal the origin of the illicit funds.
70 MONTHS FOR COVID FRAUD Today in Los Angeles, Sarkis Sarkisyan was sentenced to 70 months’ imprisonment for his role in a series of fraud schemes that caused nearly $5 million in losses to federal COVID-19 relief and small business lending programs. According to court records, Sarkisyan fabricated businesses, payrolls, IRS tax forms, and financial records to obtain federally backed loans intended to support legitimate small businesses during the COVID-19 pandemic. In total, Sarkisyan and his co-conspirators received $4,866,457 in fraudulently obtained loan proceeds. Today’s sentence is due to the dedicated work of @USAO_LosAngeles, @IRS_CI, @SBAOIG, & @HSI_HQ.
— Colin M. McDonald (@AAGMcDonald) October 10, 2026
In total, Sarkisyan and his co-schemers received $4,866,457 in fraudulently obtained loan proceeds, most of which ultimately benefited him personally.
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Sarkisyan “participated in a massive scheme to defraud multiple banks and, ultimately, taxpayers, out of almost $5 million in funds from lending programs designed to benefit small businesses and those in need during the COVID-19 pandemic,” prosecutors argued in their sentencing memorandum. His scheme “involved fabricating out of whole cloth businesses to make them appear legitimate entities whose funds taxpayers would expect to be an engine for the greater economy or in need of dire assistance during the pandemic,” and by doing so, defendant “exploited the goodwill of lenders and taxpayers.”
A deferred restitution hearing is set for December 4.
The man helped to defraud COVID 19-relief programs out of nearly $5 million. https://t.co/qHtWVtbTG9 https://t.co/DhF67EEm5E
— KTLA (@KTLA) October 10, 2026
SBA-OIG, IRS Criminal Investigation, and HSI are investigating this matter.
Assistant United States Attorneys Andrew M. Roach and David C. Lachman of the Major Frauds Section are prosecuting this case.