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Alleged COVID-19 scammer returns to U.S. after year on the run

Attorney General Merrick B. Garland makes his remarks while speaking at the Community Violence Intervention and Prevention Initiative Grantee Conference in St. Louis on Thursday, February 16, 2023. The Justice Department invested $100 million to support community violence interventions that are working to expand the role of community partners as a complement to law enforcement. Photo by Bill Greenblatt/UPI
Attorney General Merrick B. Garland makes his remarks while speaking at the Community Violence Intervention and Prevention Initiative Grantee Conference in St. Louis on Thursday, February 16, 2023. The Justice Department invested $100 million to support community violence interventions that are working to expand the role of community partners as a complement to law enforcement. Photo by Bill Greenblatt/UPI | License Photo

Feb. 28 (UPI) -- An alleged COVID-19 loan fraudster is back in the United States after fleeing to Montenegro to avoid her prison sentence.

Tamara Dadyan of Encino, Calif., is expected to appear in the U.S. District Court in Los Angeles Tuesday, according to the Justice Department.

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Dadyan was extradited by Montenegro and arrived in Los Angeles Monday night following more than a year on the run. The department alleges that Dadyan fled the United States to Montenegro in January 2022, to avoid serving a 10-year, 10-month prison sentence. In Montenegro she reportedly met with two co-conspirators who were also sentenced to prison for their roles in a scheme to defraud the government for COVID-19 relief funds.

Dadyan and three other members of a Los Angeles-based fraud ring were charged in November 2020, the Justice Department said. Dadyan was charged with one count of conspiracy to commit bank and wire fraud, four counts of bank fraud, and six counts of wire fraud. She pleaded guilty to one count of fraud, money laundering and identity theft, but later moved to withdraw her plea.

"The defendants engaged in a scheme to steal critical relief funds intended to assist small businesses during the pandemic," Assistant Attorney General Kenneth A. Polite Jr. said in a statement.

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"This case, involving an egregious example of pandemic relief fraud, was the first in the country to go to trial."

The Justice Department said Dadyan was the "co-leader" of the fraud ring. Seven people have been sentenced for being part of the conspiracy, including Dadyan's sister and brother-in-law, CBS News reports. Together, they obtained more than $20 million in Paycheck Protection Program funds and Economic Injury Disaster Loan funds.

Dadyan and her co-conspirators are accused of submitting fraudulent documents, including a fake ID and tax documents, to the Small Business Administration and other lenders. The funding was used to make down payments on at least three luxury homes, each in excess of $1 million. They are also accused of purchasing jewelry, luxury handbags and a Harley-Davidson motorcycle.

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