A month-long investigation into an alleged retail fraud operation 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 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 the two Glendale residents, Arpineh Sarkisian and Argin Gharapetian, began running the operation in 2019. The couple purchased authentic designer items 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 were valued at almost $3,000 each, while Gucci luxury shoes were priced at more than $1,000.
According to police, the suspects made more than 244 transactions over several years and returned every item purchased.
Detectives estimate that total fraud attempts exceeded $300,000, and confirmed losses to retailers now reach 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 items, along with counterfeit items, packaging materials, retail labels and identifiable stolen goods. 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 August 31.
