California clan that swindled $18M from COVID cash inspires Senate bill to crack down on ‘fraudster families’

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Key points

• The retiring Hawkeye State Republican highlighted 15 "fraudster families" she dubbed a "shady bunch" in her Squeal Award for August.
• Using stolen identities from foreign exchange students as well as elderly and dead individuals, they swindled $18 million in COVID-19 relief funding before being caught and convicted in 2021.
• This person 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.
• Ernst's list additionally included a Washington state family that feigned caregiver roles to take $1.1 million from the Veterans Affairs Administration.
• As the Edwards maintained to have over 500 employees, an elderly, supposedly dementia-stricken accountant allegedly greenlit the family's request but offered some $8.4 million.

See more of our coverage in your search results. Add The New York Post on Google. WASHINGTON – They're a shady bunch.

Notably, 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 afterwards, 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 administration aid.

For context, 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 funds.

In practice, 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 informed 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."

Notably, the retiring Hawkeye State Republican highlighted 15 "fraudster families" she dubbed a "shady bunch" in her Squeal Award for August. It she hands out monthly to spotlight administration waste, fraud and abuse. At the top of the list was the California family.

Ayvazyan and Terabelian were afterwards caught in Montenegro and are now serving out a 17-year and a six-year prison sentence, respectively.

In practice, 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.

As a "cold-hearted fraudster" who "views fraud as an achievement" during sentencing, a presiding judge had slammed Ayvazyan, the ringleader.

Ernst additionally 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 funds had been intended to feed 5 million needy children. One of the Mohamed family members had an infamous session with Minnesota Attorney General Keith Ellison. It drew scrutiny from congressional Republicans.

Another case cited was the Edwards family. This person 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.

As the Edwards maintained to have over 500 employees, an elderly, supposedly dementia-stricken accountant allegedly greenlit the family's request but offered some $8.4 million. Most of the family obtained away without being charged, including the father, Evan, a pastor who was deemed incompetent to stand trial.

For context, the son, Josh, was sentenced to four years and three months behind bars earlier this year.

Notably, the retiring senator additionally 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 afterwards 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 additionally 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. This person asserted 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.

Meanwhile, the senator's list totals $50 million in stolen funds by "fraudster families." Her No Cash for Cohabitating Kins of Crooks Act is the latest piece of legislation she's unveiled to target administration waste, fraud, and abuse.

"Their next scam-ily reunion will be in the slammer, " Ernst further chided.

In short, california clan that swindled $18M from COVID cash inspires Senate bill to is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.