3 Arrested for Alleged $21,000 Extortion

Two men were arrested Friday as suspects in an extortion ring that allegedly coerced $21,000 from a Reseda businessman, a case police say illustrates a citywide expansion of gang crime.

The arrests of Rock Soultanian, 27, of Panorama City and Armen Shahbazyan, 34, of Reseda followed Thursday’s arrest of the alleged ringleader, Barseg “Smokey” Kapoushian, 23, of Reseda. He was arrested in Van Nuys and later released on $130,000 bail, police said.

Early this year, a crew of five men, including Armenian Power and White Fence gang members and associates, befriended the alleged victim, police said.

After becoming acquainted, the suspects told the man they were interested in buying his floundering nightspot, Showgirls, a bikini club in Reseda, police said. But instead, they allegedly began threatening and demanding money from the owner. At least three months and a reported $21,000 in payoffs later, Albert Bassil called the police.

“He gave up 21 grand before he ever came to us,” said Police Lt. Gary Nanson, commander of the Valley Bureau gang unit. Nanson suggested that a fear of the extortionists combined with a mistrust of police kept the man from alerting the department sooner.

“Some people who come from other countries--this guy was from somewhere in the Middle East--are very reluctant to call, and a lot of times these crimes do not get reported,” Nanson said.

Kapoushian, who denies ever being in Armenian Power, said the police have it backward.

“I lent Albert Bassil $5,000 to help him with his club, and he wouldn’t ever pay me back,” Kapoushian said Friday. “I finally said, ‘Can you at least pay me $1,500?’ So he calls yesterday and says he’s got the $1,500 and when I get there, the cops arrest me. For what? I didn’t do anything wrong other than be a nice guy and lend him money.”

Bassil refused to comment on the case.

Soultanian and Shahbazyan were arrested at their apartments.

“What is this about?” Soultanian said after 10 officers with guns drawn moved in on his apartment complex and arrested him. “I really don’t know what’s going on.” He admitted he was a former member of White Fence, a traditional enemy of Armenian Power.

Police said street gangs are expanding beyond drive-by shootings, drug sales and robberies into extortion and other crimes, including credit card fraud and identify theft.

“These extortion cases and other white-collar crimes are getting more prevalent,” Nanson said.

Linda Lowande, the lead officer in the case, said Armenian Power--or AP, as it is known on the streets--is particularly good at selecting extortion victims.

“AP is smart, and they’ve got money and aren’t afraid to flaunt it and not afraid to threaten,” she said. “And they are very mobile.”