Jury Convicts Glendale Man in Fuel Tax Fraud

A federal jury convicted a Glendale man of 56 counts of fraud, money laundering and other charges for his role in a multimillion-dollar fuel excise tax scam, authorities said Wednesday.

Akop “Apy” Hakopian, 38, who ran Pegasus Transportation Co., a Long Beach trucking company, was among 10 defendants named in a federal indictment last year. Authorities said the defendants were part of a ring based in the San Pedro and Long Beach area that fraudulently purchased about $8 million worth of diesel fuel during a three-month period.

The group, allegedly led by co-defendant Youssef Kamel Keroles of San Pedro, also defrauded a company called Magnum Oil that was created by undercover FBI and IRS agents, authorities said.

Authorities said the conviction Wednesday represents law enforcement’s determination to stop groups from depriving state residents of taxes intended to help maintain roads and freeways.

“The California Department of Justice estimates that fuel tax frauds cost Californians up to $1 million a day in lost tax revenues,” said U.S. Atty. Nora Manella.

The federal indictment charged that several of Hakopian’s co-defendants, including Keroles, operated California Oasis Product, a wholesale oil distribution company in San Pedro. The group created and executed a scheme to evade the 18-cent-per-gallon excise tax due to the state on diesel fuel sold to customers at service stations and truck stops, authorities said.

Hakopian, authorities said, was one of several fuel brokers who made arrangements with retail service stations and truck stops to sell large quantities of fuel purchased from a Keroles-controlled company to retail customers. Hakopian also provided transportation for some of the fuel deliveries through his trucking company, officials said.

The jury deliberated less than two hours before convicting Hakopian.

The other nine defendants previously pleaded guilty to charges that included criminal conspiracy, tax fraud, mail fraud and wire fraud.

Sentencing is scheduled Oct. 28.