NASA employee admits to using COVID-19 relief loans to fund illegal marijuana cultivation

A NASA employee admitted to using federal COVID-19 relief loans to pay off his real estate debt and help fund an illegal marijuana cultivation project, according to federal prosecutors.

Armen Hovanesian, a budget-planning resource analyst for NASA-JPL, allegedly lied in multiple loan applications and received $151,900, which was meant to be used to alleviate some of the financial effects of the COVID-19 pandemic on businesses he controlled.

Instead, the 32-year-old resident of Glendale used the money to pay off personal real estate debts and buy equipment for an illegal marijuana grow operation, according to a federal complaint.

Hovanesian's attorney did not immediately respond to a request for comment.

On July 20, Hovanesian signed a plea deal with federal prosecutors agreeing to plead guilty to one count of wire fraud.

According to the federal complaint, Hovanesian applied for three loans between June 27 and Oct. 5, 2020, using names of businesses that he and his wife controlled. Hovanesian, however, allegedly lied in the applications about revenues, operations, and costs incurred by the businesses during the pandemic.

The low-interest loans issued by the Small Business Administration were meant to provide help to businesses hurt by the pandemic.

In 2021, the U.S. attorney general established the COVID-19 Fraud Enforcement Task Force to tackle pandemic-related fraud.

Hovanesian is expected to appear in court Aug. 11. He faces a maximum possible sentence of 20 years in prison.

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This story originally appeared in Los Angeles Times.