FBI arrests 11 in LA over alleged $17m real estate, loan fraud

A sprawling “house stealing” operation allegedly targeted elderly homeowners and pulled in roughly $17 million over several years. The case exposed just how vulnerable fully paid‑off properties remain to title and mortgage fraud.

The case, dubbed “Operation Hard Money,” stemmed from a 2022 loan of about $5.7 million that investigators said was obtained with a victim’s stolen identity and forged documents.

Detectives said they then uncovered additional elderly victims and a pattern of fraudulent mortgage loans tied to high‑value homes in neighborhoods including Hollywood, Santa Monica and Westwood.

“Common elements of the fraud scheme include victims who are all over 70 years old, own multiple properties outright with no mortgages, debts, liens, or encumbrances,” Los Angeles Police Department said in announcing the arrests.

Eleven people were indicted on February 5 in a 15‑count federal case that included charges of conspiracy to commit wire fraud, wire fraud, identity theft and money laundering.

The defendants allegedly created fake IDs and email accounts in victims’ names, posed as owners or their representatives, and submitted loan applications supported by fabricated bank records and even falsified death certificates.

Private lenders were allegedly misled into funding loans secured by homes the borrowers did not actually own.

“It’s a complex fraud scheme in which people are using private citizens’ homes to leverage that to steal money,” Akil Davis, assistant director in charge of the FBI’s Los Angeles Field Office, said.

“The growing problem of title fraud victimizes homeowners and lenders, many of whom are elderly,” Davis said.

Broader surge in title and elder fraud

Authorities said the group sought about $17.4 million and successfully drew down roughly $6 million from private lenders before the scheme was disrupted. 

“They didn’t just steal identities — they used those stolen identities to secure high‑value real estate loans and move millions of dollars through fraudulent businesses,” Tyler Hatcher, special agent in charge of IRS Criminal Investigation in Los Angeles, said.

First Assistant US Attorney Bill Essayli said, “There is no shortage of massive fraud occurring within California. These defendants will be facing significant prison time for their charged conduct.”

Regulators and industry groups have been warning that deed and refinance fraud are rising risks for lenders and investors.

A Milliman study for the American Land Title Association found fraud and forgery claims on mortgage refinances climbed to more than 40% of total title insurer losses and expenses.

Consumer agencies also warned that seniors with substantial home equity and no existing mortgage are especially attractive to fraudsters. In February, the California Department of Real Estate urged older homeowners to monitor their property records and use only licensed professionals in real‑estate transactions, citing increasing scams that targeted seniors’ homes and equity.

Federal guidance on home title fraud similarly pointed to forged deeds and phantom sales used to obtain mortgages without the true owner’s knowledge.

Potential penalties and industry lessons

All defendants in Operation Hard Money face conspiracy and wire‑fraud counts, with several also charged with aggravated identity theft and money laundering.

If convicted, they could face up to 20 years in federal prison for each fraud‑related count, along with mandatory additional time for identity theft.

Those charged include:

• Nazaret Chakrian, 65, of Hollywood

• Arnold Moradians, 57, of Hollywood

• Avetis Hekimyan, 38, of North Hollywood

• Marine Sarkisian, 49, of Hollywood

• Victor Lossi, 43, of Thousand Oaks

• Cynthia Borjas, 51, of Koreatown

• Armen Vardevaryan, 55, of North Hollywood

• Ross Tarkhan, 32, of Glendale

• Craig Higdon (also spelled Craig Higson in one version), 66, of Naples, Florida

• Helen Spangler, 62, of Oakdale, California

• Tigran Hovanesian, 56, of Glendale

Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.