Thursday, October 14, 2010

There goes the GDP growth.

It's no secret that the Armenian economy is mostly an empty bubble and a major chunk of the Armenian GDP is comprised of money flowing in from abroad when the migrant workers transfer some of their earnings to relatives.

Yesterday the FBI busted a criminal gang of Armenians who had been scamming the federal government out of at least $35 million. This money, after living cost expenditures like mansions, expensive cars and hookers, eventually had ended up in Armenia. With this flow now cut, Armenian GDP growth will undoubtebly suffer.

[...] Officials say some of the proceeds from the operation were couriered back to Armenia in cash.[...]

Pzo in the news


Observer said...

wow, I hadn't paid attention to that bit... there goes the GDP growth indeed!

tzitzernak said...

I like this part the best:

"A US Attorney said the scheme's scope and sophistication put the traditional mafia to shame."

nazarian said...

I think the attorney is BS-ing to show how important he or she is.

Medicare and medicaid fraud is quite widespread and no one in the federal government has cared about it so far. Last year they hired third party auditors to run models to find fraud so in the future we will see more of this. I guess these guys were a little too careless and brazen in their efforts to get caught so early.