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Insurance fraud investigation ongoing

July 20, 2002

Gretchen Hoffman

Seven people have been arrested in Glendale and Burbank in

connection with a suspected fraud ring that staged collisions to

collect settlements from insurance companies, officials said.

Investigators with a Los Angeles County-organized auto fraud task

force executed arrest warrants for 28 people throughout the San

Fernando Valley on Tuesday, and at least 10 suspects are still

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outstanding.

Search and arrest warrants were issued for homes, chiropractic

offices and a car-repair business around the county, including

Glendale and Burbank. Included in the 19 people arrested are:

Glendale residents Garnik Arzumanyan, 37; Gayane Arzumanyan, 34;

Vardui Bandzhardzhyan, 59; and Jong Min Lee, 27. Also arrested were

Burbank residents Sargis Kbulchyan, 47; Yegine Kbulchyan, 45; and

Manvel Kbulchyan, 21.

The "Operation Roundup" investigation was launched last November

by the state Department of Insurance, California Highway Patrol and

the Los Angeles County District Attorney's Office.

"This investigation is still going," said Howard Hughie,

Supervising Criminal Investigator with the Department of Insurance.

"We're working on getting the rest of the warrants served."

None of the remaining nine warrants are for Glendale or Burbank

residents, Hughie said. A 10th outstanding suspect is a juvenile.

The ring is suspected of having staged hundreds or thousands of

collisions. "Cappers" or "stagers" recruited people to participate in

the crashes, file false insurance claims, seek medical treatment for

nonexistent injuries and demand settlements from insurance companies.

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