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WASHINGTON — They’re a shady bunch.
A California family that swindled $18 million in COVID-19 relief cash to splurge on various trappings — including a Harley-Davidson, diamonds and luxury homes — inspired a Senate crackdown on so-called “fraudster families.”
Two of the family members, Richard Ayvazyan and his wife, Marietta Terabelian, cut off their ankle bracelets and ditched their three children via a goodbye note to flee the US after being convicted on fraud charges, before being caught in Montenegro.
Years later, the saga inspired Sen. Joni Ernst (R-Iowa), who has led the Senate DOGE Caucus, to push for legislation cutting off so-called “fraud families” from government aid.
The No Cash for Cohabitating Kins of Crooks Act bars individuals who live with convicted criminals or fraudsters cut off from federal grants, loans, subawards, or reimbursements from getting that money.
The legislation includes a carve-out for spouses who live separately from someone or survivors of domestic abuse.
“Committing fraud is literally all relative for these families of felons,” Ernst told The Post. “My latest investigation found schemes sprouting from family trees across the country, with kin teaming up to rip off taxpayers to the tune of $50 million.”
The retiring Hawkeye State Republican highlighted 15 “fraudster families” she dubbed a “shady bunch” in her Squeal Award for August, which she hands out monthly to spotlight government waste, fraud and abuse.
At the top of the list was the California family.
Ayvazyan and Terabelian were later caught in Montenegro and are now serving out a 17-year and a six-year prison sentence, respectively.
The couple had teamed up with former Los Angeles-area real estate broker Tamara Dadyan — Ayvazyan’s sister-in-law — and her husband Artur Ayvazyan on the scheme.
Using stolen identities from foreign exchange students as well as elderly and dead people, they swindled $18 million in COVID-19 relief funding before being caught and convicted in 2021.
A presiding judge had slammed Ayvazyan, the ringleader, as a “cold-hearted fraudster” who “views fraud as an achievement” during sentencing.
Ernst also cited a family conviction in the infamous $250 million Feeding Our Future Fraud Scheme in Minnesota, in which Gandi Yusuf Mohamed and five family members swindled over $10 million from the Federal Child Nutrition Program.
That money had been intended to feed 5 million needy children. One of the Mohamed family members had an infamous meeting with Minnesota Attorney General Keith Ellison, which drew scrutiny from congressional Republicans.
Another case cited was the Edwards family, who were living in Florida when they concocted a bogus family ministry to seek $6 million from the Small Business Administration’s Paycheck Protection Program during the pandemic.
An elderly, supposedly dementia-stricken accountant allegedly greenlit the family’s request but gave some $8.4 million, as the Edwards claimed to have over 500 employees. Most of the family got away without being charged, including the father, Evan, a pastor who was deemed incompetent to stand trial.
The son, Josh, was sentenced to four years and three months behind bars earlier this year.
The retiring senator also highlighted a case of four “grifting grandmothers” — all of whom are sisters — who snatched some $11.5 million from the Department of Agriculture by furnishing some 200 false claims for farm aid.
They splurged on six-figure homes, fancy cars, and more. But the feds later determined the grandma thieves “in most cases, had not even attempted to farm.” They were then hit with some 115 fraud counts.
Ernst’s list also included a Washington state family that feigned caregiver roles to take $1.1 million from the Veterans Affairs Administration. The fraud revolved around Kelly Lee-Carroll, who claimed she was partially paralyzed and couldn’t walk. She had her sister and son serve as caretakers.
Ultimately, she was sentenced to 17 months and her son to 14 months for the scheme.
The senator’s list totals $50 million in stolen money by “fraudster families.” Her No Cash for Cohabitating Kins of Crooks Act is the latest piece of legislation she’s unveiled to target government waste, fraud, and abuse.
“Their next scam-ily reunion will be in the slammer,” Ernst further chided.
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