Crime scene barriers remained in place after a mass shooting in downtown on Saturday, July 5th, 2025, in Indianapolis.
Los Angeles, California – In one of the more disturbing fraud cases to emerge from the pandemic era, two brothers from Southern California were arrested this week and charged with orchestrating a scheme to steal over $2.7 million in federal COVID-19 relief funds — including by exploiting the stolen identities of developmentally disabled individuals living in long-term care facilities.
Norayr Madadi, 40, of Burbank, and Vazrik Madadi, 44, of Glendale, were taken into custody on Wednesday morning following the unsealing of an eight-count federal grand jury indictment. The charges, announced by the U.S. Department of Justice, include conspiracy to commit wire fraud, wire fraud, and money laundering. Norayr, a former banker at Wells Fargo, faces additional counts of aggravated identity theft and making false statements to a federal agent.
Prosecutors allege that between March 2020 and April 2021, the Madadi brothers used fake and stolen identities — including those of two disabled victims — to create shell companies and submit fraudulent applications to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL). Norayr allegedly used his position at Wells Fargo to open accounts in the names of these fictitious businesses and individuals, facilitating the flow of funds.
The loans, meant to keep small businesses afloat during the height of the pandemic, were instead used to fund a lavish lifestyle. Court filings allege the brothers funneled the money into personal accounts and spent it on gambling, luxury vehicles, high-end jewelry, and large cash withdrawals.
Federal investigators believe the scheme resulted in approximately $2.7 million in losses to the U.S. government. The loans were disbursed by the Small Business Administration and private lenders participating in the relief programs, which were designed to support struggling workers, business owners, and families through the economic upheaval of COVID-19.
Both men pleaded not guilty during a Wednesday arraignment in U.S. District Court in Los Angeles. Norayr Madadi was released on a $25,000 bond, and Vazrik Madadi on a $50,000 bond. Their trial is scheduled to begin on September 2.
If convicted, each brother faces up to 20 years in prison for the wire fraud charges, and up to 10 years for each money laundering charge. Norayr could receive an additional five years for the false statements count and a mandatory two-year sentence for aggravated identity theft.
The case underscores the ongoing fallout from the federal government’s massive pandemic-era aid efforts, which, while urgently deployed, have since become fertile ground for fraud. In this case, the alleged use of disabled individuals’ identities—people with no ability to protect themselves—adds a chilling layer to what is already a deeply troubling scheme.
The FBI is leading the investigation, with federal prosecutors pledging continued scrutiny of those who used the pandemic not as a moment of collective survival, but as an opportunity for personal gain.
