Aryeh Greenes, along with his co-defendant, Aviv Mizrahi (aka Aviv Shoham Schwartz), are wanted for their alleged involvement in defrauding financial institutions of $33 million in California, and elsewhere, from February 2004 to June 2008.
Greenes was the Chief Financial Officer of several of Mizrahi's electronic wholesaling businesses, in which he allegedly held millions in receivables and assets. Financial institutions entered into loan agreements with these companies because the companies granted a security interest in their inventory and accounts receivables. Greenes and Mizrahi allegedly submitted fraudulent documents to lending institutions to obtain or increase loans - including accounts receivable summaries, tax returns, borrowing base certificates and financial statements. Greenes allegedly made false statements to obtain loans or increase existing loans for the companies, including displaying inflated company assets, sales, and accounts receivable information which he knew were significantly less than the amounts represented on documents submitted to the financial institutions. Most of the purported inventory and accounts receivables of Mizrahi's companies did not exist and some of the accounts payable were non-existent. The companies' inventory was auctioned off, but the proceeds only resolved or repaid a small amount of the loans.
A federal arrest warrant was issued for Greenes in the United States District Court, Central District of California, on January 30, 2014, after he was charged with bank fraud, false statements to a federally insured financial institution, aiding and abetting, and causing an act to be done.