Former Wells Fargo Banker Allegedly Used Stolen IDs of Disabled Persons in $2.7M COVID Fraud Scheme
July 18, 2025
Bob Coleman
Founder & Publisher
Former Wells Fargo Banker Allegedly Used Stolen IDs of Disabled Persons in $2.7M COVID Fraud Scheme
A former Wells Fargo banker from Burbank, California, and his brother have been indicted for allegedly ripping off more than $2.7 million in COVID relief loans, including PPP and EIDL, by submitting applications using stolen identities (including those of developmentally disabled people in long-term care).
Norayr Madadi, 40, who worked at Wells Fargo, and his brother Vazrik Madadi, 44, ran multiple shell companies like M Flooring Inc. and Quality Kitchen Floors, none of which had real employees, revenue, or legitimate business operations. Prosecutors say Norayr used his bank position to open accounts with fake and stolen identities, including two disabled individuals’, without consent.
The loan applications falsely claimed payroll, revenue, and employee counts to secure millions from the Economic Injury Disaster Loan and Paycheck Protection Program. The brothers then blew the money on casinos, luxury car leases, jewelry, and big cash withdrawals, violating every rule meant to ensure the funds went to legitimate business purposes.
This wasn’t a quick scam. The brothers had dormant accounts for years, then activated them to create the illusion of an established business. In June 2025, a federal grand jury indicted the Madadi brothers on charges of conspiracy to commit wire fraud, aggravated identity theft, and money laundering. Both have pled not guilty.
The scheme started the day PPP was announced, March 30, 2020. That same day, Norayr allegedly opened a Wells Fargo account in the name of a disabled person, submitted a $1.2 million EIDL application claiming five employees, and a separate application for his brother’s fake business claiming $336,000 in revenue. They certified the loans would be used for working capital, but that wasn’t the case.
In June 2020, they submitted a PPP loan for M Flooring, claiming $28,000 in payroll, backed by forged documents for a business that didn’t exist. The money was spent on personal indulgences while real businesses struggled for survival.
If convicted, the Madadi brothers face decades behind bars, with wire fraud charges carrying up to 20 years each, and aggravated identity theft adding mandatory consecutive sentences. The indictment shows the lengths some will go to exploit relief meant for struggling businesses and underscores the importance of vigilance in fraud prevention and enforcement.