Norayr Madadi, 40, of Burbank, entered a plea to one count of conspiracy to commit wire fraud, which carries a possible sentence of up to 20 years behind bars, according to the U.S. Department of Justice. Sentencing was scheduled for April 27, 2026.
According to the indictment, the former banker opened fraudulent accounts in the names of shell companies and persons using stolen and phony identities.
From March 2020 through April 2021, the defendant obtained millions of dollars in Paycheck Protection Program and Economic Injury Disaster Loan Program loans by submitting loan applications with false statements about revenues, operations and employees.
Madadi used fake and stolen identities to further the scheme, including the stolen identities of two victims who are developmentally disabled and live in long-term care facilities, papers filed in Los Angeles federal court show.
The funds were disbursed into bank accounts controlled by the defendant, including Wells Fargo accounts, prosecutors said. Madadi spent the loan proceeds at casinos, paying for luxury cars and jewelry, and cash withdrawals, authorities said. Law enforcement believes the losses caused by the scheme reached nearly $2.7 million.
Norayr Madadi’s brother, Vazrik Madadi, 44, of Glendale, is also charged in the case and is expected to plead guilty to a federal charge.
