A monthslong investigation into a suspected retail fraud operation has led to the arrest of two Glendale residents accused of orchestrating a scheme involving counterfeit returns of high-end merchandise, authorities said Thursday.
The investigation began earlier this year when store employees at luxury retailer Nordstrom flagged suspicious return activity at a Glendale location to the Glendale Police Department.
According to investigators, the scheme came to light in February when an employee identified a customer attempting to return what appeared to be a counterfeit item. Then in March, Nordstrom’s internal investigation team alerted police to a broader pattern of fraudulent transactions.
Authorities allege that the two Glendale residents, Arpineh Sarkisian and Argin Gharapetian, began carrying out the operation in 2019. The pair purchased authentic designer goods online, including designer clothing and cosmetics, before returning counterfeit versions for refunds, investigators say.
Designer handbags from brands such as YSL were cited in the investigation and valued at nearly $3,000 each while luxury Gucci shoes were priced at over $1,000.
The suspects conducted more than 244 transactions over several years, returning every item purchased, according to police.
Detectives estimate the total attempted fraud exceeded $300,000, with confirmed losses to the retailers now reaching approximately $50,000 as additional fraudulent returns continue to be identified.
On April 22, officers executed a search warrant at a Glendale residence linked to the suspects. Inside, they discovered a large quantity of designer goods, along with counterfeit items, packaging materials, retail tags and identifiable stolen property. Authorities also found evidence suggesting the authentic merchandise was resold through online platforms.
Both suspects were arrested following the search and now face multiple felony charges, including grand theft, receiving stolen property and theft by false pretenses, according to authorities. They are scheduled to return to court for arraignment on Aug. 31.
