Organised criminals in Los Angeles are living a life of luxury by systematically stealing the identities of foreign celebrities, athletes, and academics to commit large-scale financial fraud, according to cyber security experts.
The Mechanics of the Multi-Million Dollar Scam
The sophisticated scheme was first uncovered by David Maimon, a criminology professor at Georgia State University and head of fraud insights at SentiLink, a company specialising in preventing identity fraud for financial institutions. Professor Maimon's team was initially examining suspicious credit applications made in the names of celebrities when they made a startling discovery.
In September, they identified hundreds of fraudulent credit applications that could be traced back to just a handful of addresses in the Los Angeles area. The fraudsters were not just targeting famous individuals but were also exploiting the Social Security numbers of foreign scholars who had previously worked in the US as teaching professors or visiting lecturers.
Personal information was stolen from online databases, containing details of visitors who had arrived in the US as far back as 1977 and left as recently as 2024. Because these academics no longer reside in the country, they remain unaware that their identities are being used to accumulate significant credit card debt, which would ruin their credit scores and prevent them from securing work or housing should they ever return.
Organised Crime Links and Geographic Clusters
The fraudulent applications were concentrated in specific Los Angeles neighbourhoods, including Van Nuys, North Hollywood, Toluca Lake, Glendale, and Thai Town. Professor Maimon explained to The Los Angeles Times that these locations were strategically chosen because the criminals had easy access to them for collecting mail, credit cards, and other sensitive documents.
Significantly, these areas fall within the known territory of Armenian Power, an organised crime group with a long history of executing sophisticated financial crimes. Authorities note that this group has been involved in identity theft and white-collar crime for approximately 15 years.
Adding a potential geopolitical dimension to the crime, Maimon pointed out that about half of the defrauded scholars are from Turkey, a nation with a historical rivalry with Armenia. This detail further supports the theory of involvement by an Armenian crime group.
Law Enforcement Response and Wider Implications
Sergeant Frank Diana of the L.A. County Sheriff’s Department Fraud and Cyber Crimes Bureau confirmed the severity of the situation. He stated that the scammers are "doing it to make millions of dollars, live in nice houses, all at the expense of taxpayers." He added, "It’s not their money, but they’re living like kings."
While Sgt. Diana did not confirm Armenian Power's direct involvement in these specific cases, he acknowledged that sophisticated Armenian crime groups are responsible for a significant portion of financial crime in L.A. County, noting, "That’s what they do for a living and [they] make a lot of money."
Despite the scale of the fraud, Professor Maimon has reportedly not yet provided his findings to law enforcement due to fears of potential repercussions from the criminal organisations involved. He has, however, alerted the affected financial institutions. The Independent has contacted the Los Angeles Police Department, Burbank Police Department, and Los Angeles County Sheriff’s Office for further information on any ongoing investigations.
