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City News Service
October 7, 2005 Friday
Investment Scam
LOS ANGELES
A Van Nuys man accused of fraudulently raising about $20 million via
his Glendale-based investment firm made his initial appearance in
federal court today on mail fraud and other charges. Melkon
Gharakhanian, 43, also known as Mike Garian, was indicted Wednesday
by a federal grand jury on eight counts related to his operation of
National Investment Enterprises Inc. Gharakhanian, who was arrested
yesterday, could face up to 40 years in prison if convicted of all of
the charges against him, according to Thom Mrozek of the U.S.
Attorney's Office. The defendant's bond hearing was postponed to
Tuesday, so he will remain confined over the weekend, Mrozek said.
Arraignment is scheduled for Oct. 17. Last year in a civil action,
the Securities and Exchange Commission won a $2.6 million judgment
against Gharakhanian and his firm, Mrozek said. From late 1999 to
2001, Gharakhanian falsely told investors he had an inside line on
initial public offerings for Internet- and technology-related
securities, promising quick profits, the indictment alleges. But
Gharakhanian, who targeted people of Armenian descent, never used
investor funds as promised, though he sent out false account
statements supposedly documenting the purchase of highly sought-after
IPOs, the government alleges. Some National Investment Enterprises
clients recouped their initial investments but, when the firm
collapsed in 2001, investors lost about $5 million, Mrozek said.
October 7, 2005 Friday
Investment Scam
LOS ANGELES
A Van Nuys man accused of fraudulently raising about $20 million via
his Glendale-based investment firm made his initial appearance in
federal court today on mail fraud and other charges. Melkon
Gharakhanian, 43, also known as Mike Garian, was indicted Wednesday
by a federal grand jury on eight counts related to his operation of
National Investment Enterprises Inc. Gharakhanian, who was arrested
yesterday, could face up to 40 years in prison if convicted of all of
the charges against him, according to Thom Mrozek of the U.S.
Attorney's Office. The defendant's bond hearing was postponed to
Tuesday, so he will remain confined over the weekend, Mrozek said.
Arraignment is scheduled for Oct. 17. Last year in a civil action,
the Securities and Exchange Commission won a $2.6 million judgment
against Gharakhanian and his firm, Mrozek said. From late 1999 to
2001, Gharakhanian falsely told investors he had an inside line on
initial public offerings for Internet- and technology-related
securities, promising quick profits, the indictment alleges. But
Gharakhanian, who targeted people of Armenian descent, never used
investor funds as promised, though he sent out false account
statements supposedly documenting the purchase of highly sought-after
IPOs, the government alleges. Some National Investment Enterprises
clients recouped their initial investments but, when the firm
collapsed in 2001, investors lost about $5 million, Mrozek said.