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8 Gas Station, Bank Clerks Charged in ATM Fraud

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TIMES STAFF WRITER

Federal authorities charged eight men Tuesday with taking part in a sophisticated ATM fraud that stole more than $2 million from bank and gas station customers throughout Los Angeles County.

Authorities say the men, who worked as service station operators and bank tellers, conspired with the ring’s leaders to illegally tap into the bank accounts of thousands of unsuspecting customers. One of the men named in the 41-page criminal complaint is a fugitive.

The gas station clerks allowed others in the conspiracy to hook up laptop computers to automated teller machines to capture customers’ bank account numbers, the Department of Justice alleged. The clerks reportedly also installed video cameras to record customers keying in their personal identification numbers.

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Using the videotapes, ring members allegedly matched personal identification numbers with stolen account numbers. Later, the numbers were encoded on blank magnetic cards and used by low-level “runners” to withdraw cash from convenience store ATMs, prosecutors said.

“This is undoubtedly the largest ATM fraud ring that I’ve ever seen,” said Assistant U.S. Atty. Stephen G. Larson.

The two-year multi-agency investigation of the ring came to a head in March, when FBI agents arrested the ringleaders--Raffie Eskandarian, 26, of Tujunga and Rene Simonian, 26, of Glendale--and 11 bank and service station clerks, officials said.

Gilbert Petrosian, described as the group’s No. 1 runner, is believed to be hiding in Iran, authorities said.

Eskandarian, Simonian and Patrick Khalafian, 28, of Montrose--who designed the computer program that downloaded account numbers as customers swiped their cards through the ATMs--have pleaded guilty to access-device fraud. Larson said they are cooperating with authorities and have not been sentenced.

Federal and local authorities arrested four additional bank tellers July 2. Seven gas station operators and alleged recruiters for the ring were picked up Tuesday morning.

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Although ATM fraud pales in comparison to credit card fraud, bank security experts say it is a burgeoning problem that is hitting the western United States especially hard.

According to a 1995 study by a private bank security agency--the most recent data available--ATM fraud accounted for nearly $100 million stolen from U.S. financial institutions that year.

The western United States, because of California’s large number of ATMs, accounted for more than 70% of those losses.

Between 1993 and 1994, the number of ATM fraud claims rose 29% and money losses rose 142%, banking industry sources said.

The bank insiders arrested this month include Armond Abramian, 22, of Glendale, Armen Allahverdian, 25, of West Hills, Edmond Aslan, 28, of Las Vegas, and Karlo Babakhanian, 24, of Burbank--all of whom were tellers at Great Western Bank branches.

The service station workers include Kamal Sayed Alfridi, 30, of Woodland Hills, Boris Olshansky, 43, Los Angeles, Shin-Tuo “Stone” Li, 38, of Long Beach, and Wriur Levon Arabian, 26, of Ontario.

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Arabian’s brother, Dikran, 24, was arrested at his Ontario house by San Bernardino County authorities July 17 on suspicion of possessing 620 pounds of high-grade, packaged marijuana. Officials said the pot had a street value of about $3 million.

The alleged recruiters of the gas station and bank employees include Arnou Aghamalian, 24, of Glendale, Noorullah Kator, 25, of Encino, and brothers Avedis Grimyan, 26, and Tigran Grimyan, 24, both of Glendale.

Another alleged recruiter, Vladmir Grishen, escaped arrest Tuesday and is considered a fugitive.

Grishen’s aliases include Robert Langer and Vincent Duran, and his last known address is a post office box in Beverly Hills, FBI spokesman John Hoos said.

Grishen has previously been convicted of possession of a concealed weapon and conspiracy to commit wire fraud.

According to a federal affidavit, Grishen “is in the process of having his fingerprints surgically altered.”

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