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  • Investment Scam

    City News Service
    October 7, 2005 Friday


    Investment Scam

    LOS ANGELES

    A Van Nuys man accused of fraudulently raising about $20 million via
    his Glendale-based investment firm made his initial appearance in
    federal court today on mail fraud and other charges. Melkon
    Gharakhanian, 43, also known as Mike Garian, was indicted Wednesday
    by a federal grand jury on eight counts related to his operation of
    National Investment Enterprises Inc. Gharakhanian, who was arrested
    yesterday, could face up to 40 years in prison if convicted of all of
    the charges against him, according to Thom Mrozek of the U.S.
    Attorney's Office. The defendant's bond hearing was postponed to
    Tuesday, so he will remain confined over the weekend, Mrozek said.
    Arraignment is scheduled for Oct. 17. Last year in a civil action,
    the Securities and Exchange Commission won a $2.6 million judgment
    against Gharakhanian and his firm, Mrozek said. From late 1999 to
    2001, Gharakhanian falsely told investors he had an inside line on
    initial public offerings for Internet- and technology-related
    securities, promising quick profits, the indictment alleges. But
    Gharakhanian, who targeted people of Armenian descent, never used
    investor funds as promised, though he sent out false account
    statements supposedly documenting the purchase of highly sought-after
    IPOs, the government alleges. Some National Investment Enterprises
    clients recouped their initial investments but, when the firm
    collapsed in 2001, investors lost about $5 million, Mrozek said.
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