A California man pleaded guilty to stealing government funds designed to aid medical providers in the treatment of patients suffering from COVID-19. He also admitted to stealing additional government funds intended to help small businesses during the COVID-19 pandemic. According to court documents, Gurgen Israyelyan, 39, of West Hills, admitted he owned Saint Christopher Hospice Inc. (SCH), a hospice agency in North Hollywood, which closed around September 2019. SCH, which was never operational during the COVID-19 pandemic, received approximately $89,162 designated for the medical treatment and care of COVID-19 patients. Israyelyan admitted he stole the funds by spending them for his personal use and by transferring them to family members, including a family member in Armenia, rather than using the funds in conjunction with pandemic relief efforts as required. The charges against Israyelyan resulted from his intentional misuse of funds distributed from the Coronavirus Aid, Relief, and Economic Security (CARES) Act Provider Relief Fund, money specially apportioned by the CARES Act to help healthcare providers who were financially impacted by the COVID-19 pandemic to provide care to patients who were suffering from COVID-19, and to compensate providers for the cost of that care. These funds were critical to delivering relief to healthcare providers and maintaining access to medical care during the pandemic.
