LOS ANGELES — Two men have admitted to stealing nearly $4 million in cash and luxury vehicles in a high-end automobile sublease scam from 2017 to 2019 in the San Fernando Valley, the Los Angeles County District Attorney’s Office announced.
Afshin Hashemi, aka Al Hashemi of Hollywood and Arman Mave Hazarian, aka Dean Hazarian, of Tarzana both pleaded no contest to three felony counts of grand theft of an automobile and one felony count of grand theft of cash.
Hazarian admitted allegations of taking more than $500,000 through fraud and embezzlement and taking property valued at more than $3.2 million.
Hazarian is expected to be sentenced to nine years in state prison and Hashemi is expected to be sentenced to four years in prison under the terms of a negotiated plea agreement. The defendants additionally are required to pay restitution to the 11 victims named in the felony complaint.
A sentencing and restitution hearing is scheduled on Dec. 6 in Department F of the Los Angeles County Superior Court, San Fernando Branch.
Deputy District Attorney Alex Karkanen of the Automobile Insurance Fraud Division prosecuted case PA092423.
From August 2017 to February 2019, Hazarian and Hashemi used online ads to convince investors to lease or purchase high-end vehicles and turn them over to the defendants, who were supposed to sublease the vehicles at a profit. The men instead sold the automobiles to unsuspecting buyers and pocketed the cash, leaving the victims financially responsible for the vehicles, according to court testimony.
Some of the victims provided multiple cars to the defendants, resulting in individual losses of up to $750,000.
The defendants also defrauded the secondary buyers by receiving money for the vehicles but never signing over the titles.
The scheme involved the loss of more than 40 vehicles of brands including Bentley, Maserati, Mercedes Benz, BMW, Rolls Royce, Jaguar and Lexus. Some of the cars were never recovered, the prosecutor said.
A year-long investigation was conducted by the California Department of Motor Vehicles, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department and the California Highway Patrol as part of the Taskforce for Regional Autotheft Prevention (TRAP)
Man Arrested for Fraudulant Investment Scheme Claiming COVID-19 Cure
LOS ANGELES – Special agents with the FBI this evening arrested a Southern California man on a federal fraud charge alleging he solicited investments in a company he claimed would be used to market pills that would prevent coronavirus infections and an injectable cure for those already suffering from COVID-19.
Keith Lawrence Middlebrook, 53 – who is associated with several addresses, including residences in Westwood, Newport Beach and Murrieta – was arrested pursuant to a criminal complaint filed in United States District Court in Los Angeles.
The complaint alleges that Middlebrook claimed to have personally developed a “patent-pending cure” and a treatment that prevents coronavirus infection, even though every major health authority has warned that there is no specific antiviral treatment for COVID-19 and no vaccine to prevent coronavirus infection.
Middlebrook was arrested during a meeting in which he delivered pills – purportedly the treatment that prevents coronavirus infection – to an undercover agent who was posing as an investor.
Middlebrook fraudulently solicited funds with promises of massive profits for a company he called Quantum Prevention CV Inc. (QP20), and he falsely claimed to at least one potential investor that Earvin “Magic” Johnson was a member of the board of directors, according to the affidavit in support of the complaint. Mr. Johnson confirmed to investigators that he knew nothing about Middlebrook’s company.
QP20, according to Middlebrook, would mass produce the pills he claimed would prevent COVID-19. Upon receipt of investor funds, Middlebrook would issue shares in both QP20 and Quantum Cure CV 2020 (QC20), another alleged corporation Middlebrook claimed would market the serum that could cure COVID-19 patients within two to three days, the complaint alleges.
In communications with a cooperating witness, Middlebrook said, “I have Developed the Cure for the CoronaVirus COVID-19…*LA Patient tested Positive for CoronaVirus got up and walked out 51 hours after my Injection,” according to the affidavit.
In the same text message, Middlebrook also wrote, “Investors who come in at ground level say $1M will parachute with $200M – $300M…Conservative Minimum.”
“During these difficult days, scams like this are using blatant lies to prey upon our fears and weaknesses,” said United States Attorney Nick Hanna. “While this may be the first federal criminal case in the nation stemming from the pandemic, it certainly will not be the last. I again am urging everyone to be extremely wary of outlandish medical claims and false promises of immense profits. And to those who perpetrate these schemes, know that federal authorities are out in force to protect all Americans, and we will move aggressively against anyone seeking to cheat the public during this critical time.”
“There’s a particular opportunistic cruelty in seeking to profit based on the fear and helplessness of others,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As the country reacts to the current crisis, and while many suffer from losing a loved one or losing their livelihood, the last thing Americans need are con-artists who hawk miracle cures they know are not tested, guaranteed, nor approved.
The FBI is using a variety of tools to identify anyone who exploits the current crisis through investment frauds or a variety of cyber schemes – and is proactively warning investors to thoroughly research any salesperson or any product claiming to save lives, before losing their money, or creating false hope.”
Middlebrook will be held in federal custody until his initial court appearance, which is expected to be Thursday afternoon in United States District Court in downtown Los Angeles.
In a video posted eight days ago to his Instagram account, Middlebrook stated that he had created the cure for COVID-19, and he showed viewers a syringe with a clear liquid and described how his cure worked, according to the affidavit. Accompanying the video is text that reads, in part:
Yes I have Developed the Cure for the CoronaVirus COVID-19. After 6 Weeks of Intense Focus and Development (and very little sleep). I am currently going into Mass Production. … The CDC, WHO and Mainstream Media have created a Pandemonium environment. To answer this (just because it’s what I do) I have created a CoronaVirus Prevention Pill” (After 3 Days of taking it the person is Immune to the Virus and STAYS immune as long as they continue taking it once a day it the morning) and also the COVID-19 Formula Vaccine Cure to Satisfy the Physiological and Phycological Need at large.
The affidavit states that as of March 24 the video had been viewed more than 633,000 times.
In another Instagram video that was viewed more than 1 million times over approximately three days, Middlebrook shows a pill he says prevents him from contracting COVID-19 and “states that if he took the pill and walked into the Staples Center filled with COVID-19 positive individuals, he could not contract the virus,” according to the criminal complaint.
The affidavit focuses on communications – both written and over the phone – between Middlebrook and two people he thought were potential investors, the cooperating witness and an undercover FBI agent. Middlebrook made a series of claims and promises to the undercover agent, including guaranteeing that a $300,000 investment would yield $30 million, a promise that was secured “by a current $10 billion offer from an unnamed buyer in Dubai,” according to the affidavit.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. The ongoing investigation in this matter is being conducted by the FBI.
Malware and Other Coronavirus Scams Prey on Public Fears
WEST HOLLYWOOD — The City of West Hollywood is getting the word out about a Los Angeles County warning that there has been an increase in coronavirus (COVID-19) scams involving fraudulent and malicious websites, email schemes, and phishing emails containing suspicious links, as well as dishonest door-to-door asks for donations.
Local law enforcement and public officials across the region are urging community members to exercise caution.
Currently, there are several malware sites that claim to be coronavirus tracking and mapping sites that are in fact malicious. Cybersecurity experts advise website users to hover over links before clicking in order to verify the uniform resource locator (URL) before moving forward.
Online hackers may also send emails from fraudulent accounts impersonating official websites and doctors or offering medical supplies and services.
A trusted COVID-19 mapping resource is the Johns Hopkins Coronavirus Global Map, which can be found at coronavirus.jhu.edu. Additionally, there are several websites that Los Angeles County recommends for accurate, up-to-date information about COVID-19, such as:
- County of Los Angeles: covid19.lacounty.gov
- County of Los Angeles Public Health: publichealth.lacounty.gov
- California Department of Public Health: cdph.ca.gov
- Centers for Disease Control and Prevention: cdc.gov
Official City of West Hollywood coronavirus updates are available at www.weho.org/coronavirus.
As community members in the City of West Hollywood and across Los Angeles County adhere to Safer at Home directives, many are spending more hours at home. Scammers are taking advantage of this shift by traveling door-to-door asking for cash donations and Bitcoin or Paypal contributions. As a reminder, residents should never feel obligated to open a door to strangers or respond to unanticipated door-to-door solicitations.
The following is a list of safety tips:
- Avoid online advertising offers related to COVID-19;
- Decline door-to-door solicitations claiming COVID-19 fundraising;
- Do not click on emails and attachments that you do not recognize; and
- Visit trusted websites for COVID-19 related information or donate to organizations to trust and seek out.
Everyone should remain vigilant and take these steps to avoid being victimized by malicious scammers trying to profit from the COVID-19 crisis. If you believe you have been scammed, contact your bank immediately and report the information to local law enforcement. The West Hollywood Sheriff’s Station may be reached at (310) 855-8850.
The City of West Hollywood continues to urge community members to follow the LA County Department of Public Health’s Safer at Home Order, which went into effect Thursday, March 19, 2020 at 11:59 p.m. The Order will remain in effect until April 19, 2020, and may be extended. The Order was issued concurrently with orders from Gov. Gavin Newsom calling upon all individuals living in the State of California to stay home in order to reduce transmission of coronavirus.
West Hollywood City Hall is currently closed to the public and has suspended all in-person transactions. All public City buildings and facilities are closed. City Hall will remain accessible for business and essential services with transactions to be conducted by phone (323) 848-6400 and via the City’s website at www.weho.org.
The City of West Hollywood coronavirus updates are available at www.weho.org/coronavirus and the City encourages community members to follow @wehocity on Twitter and Facebook and Instagram and turn on notifications for up-to-date information regarding details in the City of West Hollywood.
To view essential-business City meetings, tune in to WeHoTV at:
- Spectrum Channel 10 (in West Hollywood)
- AT&T U-verse Channel 99 (in Southern California)
- SmartTV Apps: AndroidTV; AppleTV; FireTV; and Roku
For notifications by email, subscribe to the City’s E-Notifications at www.weho.org/email. Visit the City’s event and meetings calendar at www.weho.org/calendar and news archive at www.weho.org/news. To receive urgent updates to your phone by text and to your email, text your ZIP code to 888-777.
For updates and information about the current numbers of COVID-19 cases in the United States and in Los Angeles County, the spread of the virus, severity, treatments, precautions, and other important public health information in multiple languages, please visit websites for:
Scammers Are Posing as Census Workers on the Phone and in Person
DENVER — Census numbers are used to allocate political representation and to determine how many federal tax dollars are sent back to states for education and health programs, transportation, infrastructure and more.
But imposter scams continue to target older Americans, and with the upcoming 2020 Census, many Colorado residents could be receiving phony census contacts fishing for personal information that can result in fraud or identity theft.
Natriece Bryant, deputy executive director of the Colorado Department of Local Affairs, says the more people understand how the Census actually will work, the more likely they’ll recognize shady activity.
“There’s only 10 questions that they will be asked, and none of those questions includes anything regarding their Social Security number, bank information, credit card information,” Bryant points out. “They’ll never ask for any money or donations.”
Invitations to participate in the once-a-decade count will be sent by mail this month. People can fill out the form online, or by mail, or by telephone if assistance is needed.
If people don’t respond, starting in May, Census workers will start knocking on doors to ensure an accurate count.
Official workers should be able to show you their Census Bureau photo ID badge with a Department of Commerce watermark and an expiration date.
Nearly half of U.S. adults said they had been targeted by an imposter scam, according to a recent AARP survey, and the number of scams where criminals pose as government representatives increased more than 50% over 2018.
Bryant says one common scam to look out for involves getting a voicemail threatening arrest if you don’t call back.
“And it’s kind of like the same type of scams that you get with the IRS scam, of someone from the IRS saying they’re contacting you, if you don’t call them back that they could arrest you,” she explains. “That’s never something that will be utilized by the Census Bureau, it’s never something that anyone should ever receive.”
Scammers have learned to capitalize on current events, and Bryant says now that the Census is in the news, be on the lookout for criminals looking to deceive people into sharing sensitive information or handing over money.
If you think you’ve been targeted, or if you’re not sure if a Census form is legitimate, visit colorado.gov/census2020.
Petition Circulating to Ask Judge to Keep Ed Buck in Jail
RAGE is Latest Venue to Fall Victim to the Pandemic
Koretz Won’t Back ‘Uplift Melrose’ Plan
Man Sentenced for Hit-and-Run Death of Pedestrian on Sunset
Beverly Grove Man Charged for COVID Relief Loan Fraud
County Hospitals Receive 300 iPads for Patients to See Family
Processions to Cedars Will Salute Healthcare Workers on National Nurses Day
WeHo Webinar: Loneliness, Isolation, Depression, and Anxiety During Pandemic
Texas & California Wet Markets Show Full Extent of Vile Conditions
White House Gift Shop Selling Coronavirus Commemorative Coins
21 Workers Test Positive for Coronavirus at Rock n Roll Ralphs
Residents of Whitley Ave Hold Dance Party From Windows, Balconies
Laurel Canyon Hosts Porch Concerts Amid Stay Home Order
WeHo’s Leslie Jordan Gains 3.5M IG Followers During Quarantine
‘Safer at Home’ Extended to May 15, Face Covers Required in Public
‘Project Runway’ Star Michael Costello Converts Factory to Produce Masks
Lisa Vanderpump Says Two Sides to Coronavirus Impact on Dog Adoptions
Strip Club Forced to Close After Busted by Local News
Extremist Groups Encourage Members to Spread Coronavirus to Police, Jews
LA’s Original Farmers Market – Business Booming During Pandemic
This Just In…
- Petition Circulating to Ask Judge to Keep Ed Buck in Jail
- RAGE is Latest Venue to Fall Victim to the Pandemic
- Koretz Won’t Back ‘Uplift Melrose’ Plan
- Man Sentenced for Hit-and-Run Death of Pedestrian on Sunset
- Beverly Grove Man Charged for COVID Relief Loan Fraud
- County Hospitals Receive 300 iPads for Patients to See Family
- Processions to Cedars Will Salute Healthcare Workers on National Nurses Day