Two Los Angeles Men Charged in $33 Million Fraud Cause Sought
| FBI Los Angeles January 31, 2014 |
Two men who fled to Israel during a federal criminal investigation into their alleged criminal activity have been charged federally in connection with a $33 million bank fraud.
Aviv Mizrahi, aka Aviv Shoham Schwartz, 53; and Aryeh Greenes, 58, previous residents of the Fairfax District of Los Angeles, were charged Thursday in an indictment returned by a federal grand jury in United States District Court in Los Angeles. The 34-count indictment charges the men with bank fraud and making false statements in loan applications. Mizrahi was previously charged with bank fraud in an indictment returned under seal by a federal grand jury in May 2012.
According to the 34-count indictment, Mizrahi operated companies including New Electronic Inc. and Tech Club Inc. that operated as wholesalers of consumer electronics, including televisions and DVD players. Mizrahi also operated a retail store in Culver City known as Star Club. According to the indictment, Mizrahi and Greenes, the chief financial officer of New Electronic and Tech Club, used fake financial records over a four-year period to obtain a $28 million line of credit from United Commercial Bank and a $3 million line of credit from TomatoBank. Mizrahi allegedly used fake records to obtain another $5 million line of credit from Security Pacific Bank. According to the indictment, the banks suffered more than $33 million in losses due to the fraudulent scheme operated by Mizrahi and Greenes.
Security Pacific Bank and United Commercial Bank failed and were placed into the hands of the Federal Deposit Insurance Corporation. The bank failures cost the FDIC losses in excess of $1 billion.
Following the 2012 indictment charging Mizrahi, the FBI posted his photograph and description at this link in order to generate tips as to his whereabouts: http://www.fbi.gov/wanted/wcc/aviv-mizrahi/view. Mizrahi and Greenes, pictured below, are believed to have fled to Israel during the investigation.
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| Aviv Mizrahi, aka Aviv Shoham Schwartz Photos, from left to right, taken in 2006, 2009, and 2009 |
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| Aryeh Greenes |
After fleeing to Israel, Mizrahi legally changed his name to “Aviv Shoham Schwartz.” Both men are citizens of the United States.
Mizrahi faces a maximum statutory sentence of 1,020 years in federal prison if convicted. Greenes faces a maximum statutory sentence of 330 years in federal prison if convicted.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The charges in the indictment result from a joint investigation by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation-Office of the Inspector General.
Media Contacts:
- FBI Los Angeles: 310-996-3343
- Assistant U.S. Attorney Ruth C. Pinkel, Major Frauds Section: 213-894-6077