A West Hills man pleaded guilty on Friday in federal court to stealing government funds meant to aid medical providers to treat patients suffering from COVID-19.
Gurgen Israyelyan also admitted to stealing additional government funds intended to help small businesses during the coronavirus pandemic.
According to court documents, Israyelyan admitted that he owned Saint Christopher Hospice Inc., a hospice agency in North Hollywood, which closed around September 2019, before the pandemic started. The agency received $89,162 designated for the medical treatment and care of COVID-19 patients.
Israyelyan admitted he stole the funds by spending them for his personal use and by transferring them to family members, including a family member in Armenia, rather than using the funds in conjunction with pandemic relief efforts as required, the release said.
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Israyelyan, 39, pleaded guilty in the Central District of California to three counts of theft of government property. He is scheduled to be sentenced on June 13 and faces up to 10 years in prison for each count, according to a release from the Justice Department.
As part of the guilty plea, Israyelyan also admitted to submitting or causing to be submitted, five fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration on behalf of SCH and four other entities that Israyelyan controlled, the release added.
As a result of the fraudulent EIDL applications, the SBA disbursed about $428,100 of EIDL funds to Israyelyan. He admitted that he spent the money for his own personal benefit, the release said.