Former JPL Employee’s Sentencing Hearing Rescheduled to March for COVID-19 Loan Fraud

The Monday sentencing hearing for former Jet Propulsion Laboratory employee Armen Hovanesian, who pleaded guilty to defrauding a government-sponsored loan program intended to aid individuals and businesses during the economic fallout of the COVID-19 pandemic, has been rescheduled to March. Hovanesian, 32, from Glendale, admitted to misusing $151,900 from the program to support illegal marijuana cultivation.

In July 2023, Hovanesian, a cost-control and budget-planning resource analyst at JPL, a research and development center operated by the California Institute of Technology for NASA, agreed to plead guilty to wire fraud. Court documents revealed that between June 2020 and October 2020, Hovanesian submitted three loan applications under his control to the Economic Injury Disaster Loan Program (EIDL) administered by the Small Business Administration (SBA).

The plea agreement outlined that Hovanesian falsified information in the loan applications regarding the businesses’ revenues and the intended use of the loan proceeds. Despite certifying that he would use the funds solely for economic relief consistent with EIDL terms, Hovanesian diverted the money for personal gain, including repaying real estate debts and funding illegal activities.

Upon pleading guilty, Hovanesian faces a maximum sentence of 20 years in federal prison.

The SBA Office of Inspector General and NASA Office of Inspector General conducted investigations into the case, with support from the United States Secret Service. Assistant United States Attorney Adam P. Schleifer from the Major Frauds Section is leading the prosecution in this matter.