Exclusive | California clan that swindled $18M from COVID cash inspires Senate bill to crack down on fraudster families

WASHINGTON — They’re a shady bunch.A California family that swindled $18 million in COVID-19 relief cash to splurge on various trappings — including a Harley-Davidson, diamonds and luxury homes — inspired a Senate crackdown on so-called “fraudster families.”Two of the family members, Richard Ayvazyan and his wife, Marietta Terabelian, cut off their ankle bracelets and ditched their three children via a goodbye note to flee the US after being convicted on fraud charges, before being caught in Montenegro.Years later, the saga inspired Sen.

Joni Ernst (R-Iowa), who has led the Senate DOGE Caucus, to push for legislation cutting off so-called “fraud families” from government aid.The No Cash for Cohabitating Kins of Crooks Act bars individuals who live with convicted criminals or fraudsters cut off from federal grants, loans, subawards, or reimbursements from getting that money.The legislation includes a carve-out for spouses who live separately from someone or survivors of domestic abuse.

“Committing fraud is literally all relative for these families of felons,” Ernst told The Post.“My latest investigation found schemes sprouting from family trees across the country, with kin teaming up to rip off taxpayers to the tune of $50 million.”The retiring Hawkeye State Republican highlighted 15 “fraudster families” she dubbed a “shady bunch” in her Squeal Award for August, which she hands out monthly to spotlight government waste, fraud and abuse.At the top of the list was the California family.Ayvazyan and Terabelian were later caught in Montenegro and are now serving out a 17-year and a six-year prison sentence, respectively.

The couple had teamed up with former Los Angeles-area real estate broker Tamara Dadyan — Ayvazyan’s sister-in-law — and her husband Artur Ayvazyan on the scheme.Using stolen identities from foreign exchange students as well as elderly and dead people, they swindled $18 million in COVID-19 relief funding before ...