For Immediate Release - April 06, 2012

Worcester Based Real Estate Developer Arrested, Arraigned for Stealing Tens of Thousands of Dollars from Investors

BOSTON – A Worcester based real estate developer and contractor has been arrested and arraigned on larceny and securities fraud charges in connection with $195,000 he accepted  from investors for the agreed upon purpose of developing commercial real estate in Leicester, Attorney General Martha Coakley’s Office announced today.  He was also arraigned in connection with several tax charges.

Edward Kooyomjian, Sr., of West Boylston, was arrested by Massachusetts State Police assigned to the AG’s Office without incident yesterday at his home in West Boylston.

Kooyomjian was subsequently arraigned in Worcester Superior Court on the charges of Larceny over $250 from a Person Over 60 (2 counts) and Fraudulent Sales of Securities (2 counts).  Kooyomjian was also arraigned on the charges of Larceny by False Pretenses Relating to Credit, Making and Subscribing False Tax Returns (3 counts), and Failing to File Corporate Business Excise Returns (15 counts).  Kooyomjian entered a plea of not guilty on all charges and was released on personal recognizance, under the condition he surrender his passport and waive any extradition proceedings.

In June 2011, the AG’s Office began an investigation after multiple individuals filed complaints with the AG’s Office and the Secretary of State’s Office regarding the alleged larceny.  Authorities allege that Kooyomjian accepted $195,000 from two investors for the purpose of investing in a commercial real estate project in Leicester and that he issued stock to those investors in a development corporation, 67 South Main Street Leicester Corp., created for the project.  Investigation revealed that Kooyomjian exhausted those investments before anything was built, and authorities allege he used much of the money to cover expenses unrelated to the project, including personal expenses. 

Kooyomjian faces charges of Failing to File Corporate Business Excise Returns in connection with three real estate development companies he formed between 2005 and 2007, for which he allegedly did not file corporate business excise returns.  He is charged with Making and Subscribing False Tax Returns in connection with his alleged failure to report over $400,000 of income.  Kooyomjian is also charged with Larceny by False Pretenses Relating to Credit in connection with his use of funds from a 2007 commercial line of credit to cover personal expenses. 

A Worcester County Grand Jury returned indictments against Kooyomjian on February 16, 2012.  Kooyomjian was arrested on April 5, 2012 and subsequently arraigned in Worcester Superior Court.  Judge Janet Kenton-Walker presided over the arraignment.   Kooyomjian is due back in Worcester Superior Court on May 1, 2012, for a pre-trial hearing.

The case is being prosecuted by Assistant Attorney General Gillian Feiner and Andrew Doherty, both of AG Coakley’s Fraud and Financial Crimes Division, with assistance from Investigator Kevin Cwirka, also from the AG’s Office, the State Police from the AG’s Office, Investigators from the Massachusetts Department of Revenue, and the Secretary of State’s Securities Division.

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