3: The Boys

Summary

Kingdom of Fraud – Episode 3: The Boys

Podcast: iHeartPodcasts / Novel
Host: Michele McPhee
Original Release: May 26, 2026

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Episode Overview

In “The Boys,” investigative reporter Michele McPhee delves into the shadowy origins of the unlikely—and unprecedented—criminal partnership between Jacob Kingston, a devout polygamist from a secretive Utah sect, and Levon Termendzhyan, an enigmatic Armenian tycoon in LA’s underworld. The episode follows McPhee on her pursuit to unravel Levon’s complex past and influence, while exploring how these two men’s desperate ambitions ignite the largest tax investigation in American history, ensnaring dirty cops, politicians, and international money launderers along the way.

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Key Discussion Points & Insights

Michele’s Search for “The Lion” in Glendale (02:24–04:19)

• Setting the Scene in Glendale, LA’s Armenian Hub
  Michele drives a police-style Crown Vic through Glendale, seeking Levon's roots, observing both the community’s changing face and its old-school secrets.
• Encounters with Silence
  Attempts to pry information from locals—even over pastries in Armenian bakeries—end in evasion and visible discomfort at Levon's name.
  • “Maybe the woman just isn’t interested in talking to a reporter or she does know Lavon and she shut down immediately.” (04:19)

Takeaway:
Levon Termendzhyan commands a unique mix of fear and respect—his reputation is potent enough to silence an entire community.

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Jacob Kingston’s IRS Woes and the Emergence of “The Boys” (07:00–08:40)

• Mounting Pressure:
  Jacob's company, Washakie Renewable Energy, faces an intensive IRS audit, with agent Joseph Lankford stationed in-office.
  • Jacob, wife Sally, and mother Rachel fake documents at a feverish pace—not a sustainable solution.
• Turning to Levon:
  Jacob flies to LA for help. Levon is nonchalant:

  “Don’t worry about it. His boys would take care of it. He said he had people in the government that would prevent any audits or prosecution or persecution. He called them his boys or his umbrella.” — Jacob Kingston’s testimony (08:24)

Takeaway:
Levon positions himself as a protector with deep, corrupt connections—his "umbrella" of dirty law enforcement.

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Who is Levon Termendzhyan?

Levon's Backstory & American Dream (10:36–14:11)

• Interview with Satara Kassim, Levon’s Lawyer & Friend

  • “Best friends. I consider him family.” — Satara Kassim (10:36)
  • Levon's classic immigrant story: from Yerevan, Armenia to LA; drops out of high school, learns the gas station business, ultimately owning "Noyle Energy" (Noil = "lion" backwards).

    “He bought more locations and ended up being Noyle Energy.” — Satara Kassim (12:23)

  • The "lion" obsession: “Because he’s a Leo. Oh, it’s a zodiac sign.” (12:51)

• Lavon’s Family Life:
  Raised two children, lost his wife to mental illness in 2012—deep personal impacts.

  “He was a great dad.” — Satara Kassim (13:37)

Personality & Reputation

• Charisma and Scarface Persona:

  “Very charismatic, but he has a very Scarface persona. He speaks just like him somehow, even though he’s Armenian and not Cuban.” — Satara Kassim (11:21)

• Glitzy Lifestyle:
  Frequented Beverly Hills elite spots, indulged in lamb chops and tequila at the Beverly Wilshire.

  “He’d sit there and eat his lamb chops and drink his tequila, and that was it.” — Satara Kassim (14:31)

• The Dual Image:
  To Satara, Levon is a genuine and caring figure, not a manipulator:

  “I think people see that he’s a genuine person, he’s a genuine soul. He’s really not there to hurt anyone.” — Satara Kassim (15:18)

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Levon’s Criminal Past and ‘The Lion’ Legend (19:06–24:04)

• 1993: Operation Diesel Storm

  • Levon and brother Grigor arrested in a federal raid targeting fuel tax fraud—case dismissed for co-defendants; Levon acquitted after trial.
  • Jacob alleges this was possible because “his boys were pulling strings behind the scenes” (19:27).
  • “But that has never been proven.” — Michele McPhee (19:39)

• 2003: Glendale Kidnapping Plot

  • A police chase leads to Levon and relatives with weapons; they face firearm charges, but Levon is once more acquitted (22:20).

• “Armenian Mafia Boss” Stigma:

  • Media and law enforcement dub Levon a mafia boss, which his attorneys refute:

    "I don't think there's such a thing as Armenian organized crime." — Satara Kassim (23:42)

Takeaway:
Despite multiple brushes with the law—and being acquitted—Levon's myth grows, bolstered by both hard reality and community folklore.

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The Scarface Temperament – Actual Footage (24:29–26:14)

• Civil Deposition Highlights:
  Michele reviews rare video of Levon during a 2017 legal battle; he’s every bit the intimidating, slick-suited persona—snapping at lawyers, exuding disdain and confidence.

  • “You asked me twice the same question, so focus, please.” — Levon (26:09)

• Trust and Threat:
  Deposition records reveal Levon's philosophy:

  “When I lose my trust… not good, very bad.”

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International Intrigue: Brendan Marcy’s Account (27:18–29:38)

• Brendan Marcy, an Irish entrepreneur, stumbles into Jacob and Lavon’s orbit.
  • Unaware of the criminal web, he is pressured to pay $1.8 million—eventually fleeing LA after an intimidating near-confrontation at Levon’s gas station.

    “It’s kind of like a scene from a movie. Black SUVs outside, security guards…” (28:42) “Lavon and two other guys pull up beside me in an open-top Rolls Royce… just looking over at me, intimidating me.” — Brendan Marcy (29:23/29:33)

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"The Boys" in Action: Law Enforcement Corruption Revealed (33:50–39:42)

• Jacob Gains Access to the ‘Umbrella of Protection’

  • Dinners with high-ranking, crooked law enforcement—Homeland Security, FBI, LAPD—all on Lavon’s payroll or circle.

    “We would have dinner with police officers. We would have dinner repeatedly with Homeland Security agents.” — Jacob Kingston (34:34)

  • Notable “Boys”:

    • Detective John Ballian (Glendale PD)—now a convicted felon with organized crime ties.
    • Homeland Security agent Felix Cisneros.
    • FBI agent Babak Bramand (CIA task force).
    • Off-duty LAPD bodyguards.

• Stunning Outcome:

  • After a damning audit, the IRS orders Jacob’s company to pay over $100 million—an existential threat.
  • Lavon promises help; the fine is reduced on appeal to just $5 million.

    “To Jacob, the message is loud and clear. The boys are at work.” — Michele McPhee (39:36)

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Memorable Quotes

• On Levon’s power:

  “Lavon is telling Jacob that he has a network of corrupt law enforcement at his disposal, a very powerful coterie of crooked cops and federal agents. In that moment, Lavon becomes something more formidable than just a business partner in Jacob’s eyes, he becomes a protector with the dark side.” — Michele McPhee (08:40)

• On the scale of corruption:

  “I have never seen this level of law enforcement corruption in my entire career. And frankly, it’s so infuriating. It’s what prompted me to go down the rabbit hole of this story in the first place.” — Michele McPhee (35:00)

• On Levon's Scarface reputation:

  “Very charismatic, but he has a very Scarface persona. He speaks just like him somehow, even though he’s Armenian and not Cuban.” — Satara Kassim (11:21)

• On Levon’s view of trust:

  “When I lose my trust… not good, very bad.” — Levon Termendzhyan deposition (26:14 paraphrased)

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Timestamps for Key Segments

• Michele’s Glendale search & community’s silence: 02:24–04:19
• Jacob's IRS troubles & Levon’s promise: 07:00–08:40
• Satara Kassim on Levon's background & persona: 10:36–15:18
• Operation Diesel Storm — Levon’s first big case: 19:27–19:39
• Armenian mafia discussion & myth: 23:42–24:04
• Levon’s deposition (Scarface moment): 24:29–26:14
• Brendan Marcy’s LA intimidation story: 27:18–29:38
• Corrupt law enforcement — “the boys”: 33:50–39:36
• IRS fine reduced — proof of “umbrella” influence: 39:36–39:55

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Tone & Style Notes

• Investigative and gritty; McPhee is both skeptical and dogged, never shying from describing criminal glamor and menace in plain language.
• Darkly cinematic; descriptions of settings (back rooms, five-star hotels, open-top Rolls Royces) underline the "movie-like" quality of the story.
• Authentic, tense, occasionally wry; moments of humor (like lamb chops and tequila) punctuate the otherwise high-stakes storyline.

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Conclusion & Next Episode Tease

With the IRS saga behind them—thanks to Levon's connections—Jacob is drawn ever deeper into corruption, attending secretive dinners with not just dirty cops but politicians and global players. “This is a game of intrigue, political influence and money laundering on a global scale,” McPhee previews, promising that the next chapter will further unravel the extent of this underworld “kingdom of fraud.”

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Kingdom of Fraud is produced by Novel for iHeartPodcasts, hosted by Michele McPhee.

Transcript

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[Lavon Termenzian]

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[Jacob Kingston]

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[Satara Kassim]

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[Michelle McPhee]

Novel. I'm about to spend the day driving around in my black beat up Crown Vic. It's a police interceptor, the kind detectives cruise around in on cop shows like the Wire or a Bosch. And it started. Woo hoo Every time the car starts today, it's gonna be a little miracle. An actor friend of mine lets me use it whenever it's not needed on a film shoot. It's all very L. A. Today I'm using it to crisscross the streets of Glendale. There's nothing that really distinguishes this as it doesn't scream like you're in Little Armenia.

[Lavon Termenzian]

And the next one turn left.

[Michelle McPhee]

We did just see an Armenian Orthodox cross on the top of a preschool. Glendale is the Armenian neighborhood in la. It's become a lot more gentrified over here now. And there's a lot of high end jewelry stores and poke bars. It feels like the neighborhood has changed quite a bit. Just like I flew to Salt Lake City to understand where Jacob comes from. Today I'm fighting LA traffic to ask around about the Lion. Lavon Termenzian, Glendale is, or at least a while ago was his community. My first roll of the dice is an Armenian church that Lavon was a member of back in the day. We're at the Armenian Apostolic Church of Glendale, and it is gone. Weeds everywhere are gone. So looks like they're going to develop this into fancy condos. Well, that was a bust. We keep driving to what we think is the address of Lavon's former personal assistant.

[Satara Kassim]

The destination is on your left.

[Michelle McPhee]

There's some sort of serious construction going on. It looks like people once lived here, but this looks like a very, very dead end. But I won't be deterred. Next, we roll up to an Armenian bakery. These places have been around for decades. They're real community spots. Okay, so we are walking into the baklava factory. Hi, how are you? What is your most famous Armenian history from Armenia? What is that? This is cashew fingers with cashew. Okay, we'll take two fingers and one pine nut. And can we talk to you a little bit about the neighborhood? We're doing a podcast on a famous guy that everybody called the Lion. Did you know him? No. No. Okay, we try another bakery, load up on more pastries, and talk to some older women in line. Did you grow up in this neighborhood? Yes. Did you ever run into a guy named. Called him the lion or Le Bon Chimanzian? No, no, no, no. No dice again. But this time I sense a weird energy. No one's going to talk about Le Bond. Did you see her face? Yeah, the minute we said his name. Her face of this kindly old lady, literally shadowed. And she gave me a dirty look. Maybe the woman just isn't interested in talking to a reporter or she does know Lavon and she shut down immediately. Either way, it's becoming pretty clear to me that finding out anything about the lion won't be easy. But I'm going to do everything I can to dig into this guy's backstory. Levon is clearly someone who inspires fear and respect in those around him. He's no stranger to a criminal courtroom and and his cell phone is filled with big time connections. My name is Michelle McPhee, and from the teams at Novel and iHeart podcasts, this is Kingdom of Fraud, episode three the Bo. When we left Jacob at the end of the last episode, he's just been notified that the IRS is going to conduct an audit of his company, Washakie Renewable Energy, while at the same time the EPA is also looking into him. Jacob's under a lot of pressure. If the feds get too close, he and his entire family could very well end up in prison. When the audit begins, an IRS agent, an unassuming man named Joseph Lankford, actually gets his own desk inside the WRE offices. Every day, the agent pours through mountains of paperwork, much of it fake, and requests document after document. So Jacob, his wife Sally, and his mom Rachel start frantically faking more documents, blanking out amounts, and typing in bigger numbers so that everything lines up. But this is a cartoon solution to a real world problem. They can only keep up these shenanigans for so long. Jacob needs help, so he flies to LA and tells Lavon what's going on. But Lavon, he doesn't seem worried at all. Here's my producer, Jake, reenacting Jacob's testimony about that moment.

[Jacob Kingston]

He said, don't worry about it. His boys would take care of it. He said he had people in the government that would prevent any audits or prosecution or persecution. He called them his boys or his umbrella.

[Michelle McPhee]

Lavon is telling Jacob that he has a network of corrupt law enforcement at his disposal, a very powerful coterie of crooked cops and federal agents. In that moment, Lavon becomes something more formidable than just a business partner in Jacob's eyes, he becomes a protector with the dark side. That is the real reason I drove to Glendale, all the way from Venice on the west side of la, which is like driving to a different state in other cities. But I want to find out the truth about who Levon is and about who he's connected to. First, though, I want to tell you something. In my day job, I work as a senior writer and investigative editor at Los Angeles Magazine. That's where my first story about Jacob and Lavon came out back in October 2022. Just a few months later, Lavon's attorney, Mark Aragos bought the magazine with another lawyer. Anyone who is anyone in LA has heard of Mark. He's a go to defense attorney with a roster of headline making clients. To be clear, this podcast is editorially independent from Los Angeles magazine. Mark Garagas and Lavon. But obviously I've asked Mark if he wanted to come on this podcast and I wasn't surprised when he declined. Like most lawyers, Mark doesn't want to say anything in the media that could jeopardize his client. We've also reached out to Lavon directly, but he never responded. But Mark did get someone at the firm who actually knows Lavon better than he does to give us insight into their client. How would you describe your relationship with him?

[Satara Kassim]

Best friends. I consider him family.

[Michelle McPhee]

Satira Kassim was a young attorney at Garagas and Garagas when she first represented Lavon. So how did the we stayed good

[Satara Kassim]

friends from that first day that we met in court.

[Michelle McPhee]

That was back in 2012. Lavon had gotten himself into a situation that required his lawyer's services.

[Satara Kassim]

It was a silly case. He was accused of being at a restaurant in West Hollywood. The waitress claimed that he spit on her and something trivial like that. He was charged with battery and criminal threats. He was acquitted of criminal threats and convicted on the battery for allegedly spitting on this waitress.

[Michelle McPhee]

Tell me your first impression of him.

[Satara Kassim]

I knew exactly who I was meeting when I saw him waiting in the hallway. Very charismatic, but he has a very Scarface Persona. He speaks just like him somehow, even though he's Armenian and not Cuban.

[Michelle McPhee]

Satar describes Lavan's upbringing as a classic case of the American dream. Levan was born in Yerevan, the capital of Armenia, in 1966. Then in 1980, Lavan's entire family, mom, dad and older brother Grigor all emigrated to la. As soon as they arrived, Lavan found himself in high school. He barely spoke any English.

[Satara Kassim]

He went to high school in Hollywood High and dropped out when he was a freshman in high school. Never graduated.

[Michelle McPhee]

The story goes that the family badly needed an extra income and so Lavon

[Satara Kassim]

stepped up, got a job at a gas station, learned the gas station business, how pumps worked the register, just the basics and ended up buying a gas station or a pump at a gas station and from there just bought more locations and that ended up being Noel Energy.

[Michelle McPhee]

No, remember is lion spelled backwards. Why does your client have this obsession with lions?

[Satara Kassim]

Because he's a Leo. Oh, it's a zodiac sign.

[Michelle McPhee]

Tell me about Noyle. What kind of company is it?

[Satara Kassim]

It's a gas station. Literally, gas stations that are kind of run down. They do well because they cater to a very niche clientele, which are big rigs. They have good locations by the freeway.

[Michelle McPhee]

Big rigs go.

[Satara Kassim]

They fill up and go about their way. There's nothing more to Noyle than that.

[Michelle McPhee]

In 1989, when Levan was 23, he got married to an Armenian girl he'd fallen in love with. As Lavon built up businesses across California, he and his wife raised two children, Ann and George. But Lavon's wife suffered from a serious mental health illness and died in 2012.

[Satara Kassim]

It made him step up as a father, you know, Annie and George became his sole responsibility. He was a great dad.

[Michelle McPhee]

Lavon was hit hard by the death of his wife. He had just met Jacob Kingston months before, but Jacob actually came to the funeral. It was just months later that Satara says she first walked into Lavon's life. What was Lavon's life like then?

[Satara Kassim]

Very large. Very large. Go to restaurants in Beverly Hills. We'd always hang out at the Beverly Wilshire.

[Michelle McPhee]

The Beverly Wilshire of Pretty Woman fame is a ritzy, buzzy, five star hotel. The dark wood paneled hotel bar is where the rich and powerful of LA gather to take their lunch and close power deals. It's Lavon's favorite spot. What was his favorite drink? What would he order?

[Satara Kassim]

Lamb chops and tequila. He'd sit there and eat his lamb chops and drink his tequila and that was it. That was just how the day would

[Michelle McPhee]

go by in the years after the first battery case. So Tara built a close relationship with Lavon. It sounds to me like he became a sort of father figure to her.

[Satara Kassim]

I would go to him a lot about, like, my boyfriends and stuff, and especially with my current husband. I would tell him if we were fighting or, you know, like this and that, and he would just give me advice. I saw him being a really good friend and just being very supportive to the people around him.

[Michelle McPhee]

Satara is both Lavon's best friend and his fiercely dedicated lawyer. So it's not shocking that she has nothing but good things to say about him.

[Satara Kassim]

It's not this charismatic personality that tricks people. I think people see that he's a genuine person, he's a genuine soul. He's really not there to hurt anyone.

[Michelle McPhee]

But his personality is much more complicated than that. More after the break.

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[Michelle McPhee]

There's this one revealing moment in Jacob's testimony that really piqued my interest. A first clue to the unbelievable amount of corruption in this case. Here's my producer Jake, with Jacob's testimony about a conversation he had with Lavon about Lavon's connections, his boys.

[Jacob Kingston]

He meant his umbrella, the people he worked with and protected him. He told me that he worked with them for a lot of years. They were people that were investigating in 1993, his arrest.

[Michelle McPhee]

Okay, now I want to know what happened back in 1993. I find the answer in an LA Times article from March 4th of that year. The Times reported that armed federal agents carried out a raid of an alleged criminal ring. The takedown was nicknamed Operation Diesel Storm. Get it? The targets were suspected of running a multi million dollar fraud by claiming tax exemptions on fuel that wasn't actually eligible. Sound familiar? Early One morning in 93, agents stormed into a bunch of apartments in Hollywood and arrested four men. Among them Grigor and Lavon Termenzian, two brothers. Just weeks after their arrests, the other two guys locked up that morning walked away. Their cases were dismissed. Lavon and his brother went to trial, but they were both found not guilty. In his testimony, Jacob alleges that Lavon got away with it because his boys were pulling strings behind the scenes, which would have to mean powerful corruption reaching into the deepest recesses of the federal court system. But that has never been proven. Then I get my hands on documents related to another case featuring Levan, this one from 2003. An Armenian guy who went by the name Gordo was wanted by Glendale pd. Gordo was the main suspect in an armed kidnapping plot. Here's how Glendale Police Detective Tim Feeley describes what went down. Detective Feely has finally closed in on the suspect. Gordo. He's in his unmarked cop car and he's following Gordo, a short fat guy, through the streets of Glendale. Then he spots Gordo getting into a black Mercedes. The detective can discern that two other men are also in the car. Then the Mercedes moves and pulls up right next to Detective Feely's car. The doors open and Gordo and another guy step out. Feely can See that? Gordo has a gun tucked away in of all hiding spots, his fanny pack. The second man has a gun at his waist. That man is Levon Termenzian the Lion. The man who stays behind in the black Mercedes is his brother Grigor. Gordo is their cousin. Soon, another cop arrives at the scene. Gordo tries to run away, and Feely tackles him to the ground. To be clear, Lavan and Grigor are not implicated in Gordo's kidnapping plot, but they're both charged with firearm assault against Detective Feely and they go to trial for it. Grigor is found not guilty, but the jury was hung about Lavon and a mistrial was declared. But in his retrial, Lavon is found not guilty. Too short, fat Gordo. He pleads guilty to the attempted kidnapping he was originally wanted for. It's important to say that Lavon has been acquitted in all of the cases I've mentioned here. But all of these colorful details contained in court records have earned Lavon street status. The title Armenia Maboss is leveled at Levon quite often, and it's become a term that his attorneys despise and deny.

[Satara Kassim]

I don't think there's such a thing as Armenian organized crime. Every community has people that engage in white collar activities. Which labels you as mafia or organized crime. But I don't think that there's this club that's like a mafia. I don't think that really exists anymore.

[Michelle McPhee]

Needless to say, the Lion's Life is a lot more kaleidoscopic than the picture of Lavan that Satara Qasim painted for us, of a guy who just wants to enjoy his lamb at Tequila in peace. All this time, I keep hearing about Lavon's charisma, but also about how imposing he can be. So I was thrilled when we found this.

[Lavon Termenzian]

Good morning. Good morning. Please state your full legal name for the record, please. Lavon Terminjian.

[Michelle McPhee]

Mr. Tinelli, this is a very crackly recording of a deposition with Lavon. It's part of a civil lawsuit he filed in 2017 against a former business partner who he had an ugly falling out with. The video oozes Lavon's temperament. He's leaning back in his chair. There's disdain in his face. His hair is slicked back and black as coal. He's wearing a perfectly tailored pinstripe suit. I can definitely see what Satara means by the Scarface comparison.

[Lavon Termenzian]

What control, if any, do you have over these trucks? Stuff cops do you operate there? Are you talking about you're talking about today or 20 years ago. All right, well, let's. That's a fair. It's a third question.

[Starbucks Narrator]

All right.

[Michelle McPhee]

The deposition only touches on Jacob Kingston a little bit. But while this lawsuit was happening, Jacob and his company were a big part of Lavon's business dealings.

[Lavon Termenzian]

How did you meet Jacob Kingston?

[Starbucks Narrator]

You met with him in connection with a business deal.

[Lavon Termenzian]

We got to know. We go to conferences, petroleum conferences. Everybody comes there. So you meet people there.

[Michelle McPhee]

So you met Jacob Kingston first at a petroleum conference?

[Lavon Termenzian]

They came to me, actually, specifically talking about him. Okay. Are you specifically asking questions? Focus on your question so I can answer. What's your question?

[Michelle McPhee]

Let me finish. I'd like to know where it was, sir, that you first met him.

[Lavon Termenzian]

At my office. You asked me twice the same question, so focus, please.

[Michelle McPhee]

Listening to him bark at the lawyer like this, on the record, during a deposition, this is the kind of behavior that creates the Legend of the Lion. But the most telling part of the deposition isn't in this video. It's in a later document summarizing the deposition. At one point, Lavon explains he had previously placed a great deal of Trust in. In Mr. Sargisian, the business partner he's suing. He is actually in the room during the deposition. The document continues to describe Lavon. He's mean, mugging the guy, and then he barks, quote, when I lose my trust. It finishes up, not good, very bad. There's just one more deposition that shines more light on Lavon. And it takes us back to our story about Jacob and Lavon's scam.

[Jacob Kingston]

Would you please introduce yourself?

[Brendan Marcy]

Hi, I'm Brendan Marcy. I'm from Kilkenny in Southern Ireland. I'm in the tech business.

[Michelle McPhee]

Oh. He's also a former Irish rock star who toured with Guns N Roses and the Ramones. This biofuel world is bananas. Anyway, back in 2011, Brendan decided he wants to get into the fuel business. But he says someone at his company made a shady deal to commit fraud with Lavon and Jacob behind Brendan's back, which Brendan said he realized after about six months and immediately pulled the plug. To be clear, the person Brendan is finger pointing at denies any wrongdoing. The problem is, before Brendan shut things down, Jacob and Lavon stood to make a lot of money on this deal. So Brendan says lavon starts demanding $1.8 million in lost revenue, and he's demanding a sit down in la.

[Brendan Marcy]

I didn't understand why we owed this money and why everybody's putting pressure on us to collect money. That we didn't trade.

[Michelle McPhee]

Brendan agrees to come to la. As he drives up to the back of the Noyl gas station, he remembers feeling a knot in his stomach.

[Brendan Marcy]

It's kind of like a scene from a movie. It was like black SUVs outside. There were security guards outside as well.

[Michelle McPhee]

It all feels off to Brendan.

[Brendan Marcy]

I decided not to attend the meeting I was fearful for. I didn't. I went back to the hotel because I didn't understand why people were saying we owed $1.8 million.

[Michelle McPhee]

Brendan has no idea the complicated criminal web he stumbled into. He hides out in his hotel for two full days until it's time for his flight back to Ireland.

[Brendan Marcy]

I was driving back to the airport and Lavon and two other guys pull up beside me and an open top Rolls Royce.

[Michelle McPhee]

Brendan says Lavon and his bodyguards catch up with him on the way to the airport, drive alongside him and stare him down.

[Brendan Marcy]

Just looking over at me, intimidating me.

[Michelle McPhee]

Brendan makes it onto the flight. In the end, when all is said and done, Brendan says he never shelled out the 1.8 million to Levan. But all this is nothing compared to what Jacob is about to find out. Soon he will learn the full scale of those powerful connections that Lavon has told him all about. That's coming up after the break.

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[Jacob Kingston]

[e-mail] SpinQuest is a free to play social casino. Visit SpinQuest.com for more details.

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[Lavon Termenzian]

Hello?

[Malcolm Glebel]

Hello, this is Malcolm Glebel from Smart talks with IBM. Today we're diving into a fascinating conversation with Stefano Pallard, head of fan development for Scuderia Ferrari hp.

[Stefano Pallard]

Your pronunciation is strongly American. It's more Scuderia Ferrari.

[Malcolm Glebel]

I'm still working on rolling my R's, but what I was able to learn from Stefano was the importance of engaging the Tifosi, the Ferrari superfans in the digital age.

[Stefano Pallard]

Ferrari fans and super fans want to be part of something, want to belong to something. So they want to be part of a community and ultimately they want to be part of a winning team.

[Malcolm Glebel]

You've got Ferrari, which has a long history, design history, and now you're interacting in a kind of digital space. I'm curious how you balance those two traditions.

[Stefano Pallard]

When it comes to fan engagement, it's really digital technology. And digital channels are being able to create a deeper connection with our fans.

[Malcolm Glebel]

To learn more about how Ferrari and IBM are using technology to build deeper connections with fans, visit IBM.com ferrari

[Bethenny Frankel]

this is Bethany Frankel from Just Be with Bethenny Frankel. Let me be blunt. Most dog food is junk. It just is. And I'm not feeding junk to Biggie and Smalls. That is why they eat just food for dogs. It's real, 100% human grade food with ingredients I actually recognize, not mystery pellets pretending to be healthy. And once I switched, the difference was obvious. Better digestion, better skin, more energy. Dogs who actually feel good instead of just surviving dinner. Here's the thing. You care about quality. You make an intentional choice to be healthy. So why are you gambling with your dog's health? So let's think about our furry babies. Go to justfood for dogs.com right now and get 50% off your first box. No code. Just try it. Because once you see the difference, you're not going back.

[Michelle McPhee]

When Jacob sought Lavon's help about that IRS audit from earlier on, Lavon promised him he'd handle it. Then he invites Jacob to a dinner to show him how. It's the first of many meetings like it to come. They'd happen in the back rooms of restaurants, at Lavon's very upscale house or in five star hotels with entire floors closed off by Lavon's bodyguards. At first, the men sitting around these tables are just strange faces to Jacob. But over time, he gets to know them well. Here is my producer Jake again with Jacob Kingston's testimony.

[Jacob Kingston]

We would have dinner with police officers. We would have dinner repeatedly with Homeland Security agents.

[Michelle McPhee]

There is Detective John Ballian from the Glendale Police Department. A fed with Homeland Security Investigations named Felix Cisneros, A high ranking FBI supervisory agent, Babak Bramand, who worked on a CIA task force, and those bodyguards always surrounding Lavon. Turns out they're off duty LAPD cops. Lavon is surrounded by a coterie of dirty cops from every branch of law enforcement. I've covered organized transnational criminals for decades and I'll tell you, I have never seen this level of law enforcement corruption in my entire career. And frankly, it's so infuriating. It's what prompted me to go down the rabbit hole of this story in the first place. Here's just one example of the kinds of crooked things these guys have been up to. That Glendale detective, John Ballian, who was at those dinners. He's now a convicted felon who's pleaded guilty to a plethora of crimes, including bribery charges and links to organized crime. He also goes way back with Lavon. Here are some allegations that federal prosecutors have made against just him. Balian's story brings us back to Gordo, Lavon's short, fat cousin who went to prison for that attempted kidnapping in 2012. Gordo is appealing his conviction and prosecutors allege that Ballian takes 80 grand from, quote, Gordo's family and passes it on to members of the Mexican Mafia. Prosecutors say Ballian wants the gangbangers to track down the informant who gave Gordo up to convince the rat to change his story, which of course would help Gordo's appeal. But according to court records, the Mexican Mafia are never able to find the rat and Gordo's appeal fails either way. Imagine the impression being made on Jacob as he hears these dirty cops brag about their nefarious side hustle. If Jacob has been concerned about getting caught by the IRS or the epa, hanging out with Lavon's boys makes him feel untouchable. And then Jacob gets to experience the umbrella of protection himself. Joseph Langford, the IRS auditor, finally finishes his review and the outcome blows Jacob's mind. The documents wre submitted clearly didn't fool Joseph Washakie. Renewable Energy is in a shit ton of trouble. They are ordered to pay more than $100 million in fines and penalties. There is no way Jacob can afford that without going bankrupt. So naturally, he goes to Levon, pleading for help again. And as always, Lavon tells him not to worry, he'll handle it this time. It seems he actually comes through WRE appeals the 100 million dollar fine. And the IRS astonishingly agrees to lower it. To just 5 million dollars. To Jacob, the message is loud and clear. The boys are at work. But before long, those shady dinners aren't just with cops and federal agents. Even more high powered people start appearing around the table. Next time on Kingdom of Fraud. Jacob realizes that what he's gotten into isn't just a tax fraud anymore. This is a game of intrigue, political influence and money laundering on a global scale. Kingdom of Fraud is produced by novel for iHeart podcasts. For more for from Novel, visit Novel Audio. The show is hosted by me, Michelle McPhee and produced by Jake Otajevic. It's reported by me and Jake Otajevich. Our assistant producers are Megan Dean and Amalia Sortland with additional production from Myron Kaplan and Liz Sanchez. Our editor is Sandra Shmueli. Production management from Cherie Houston, Joe Savage and Charlotte Wolf. Our fact chapter is Fendal Fulton. Sound design and mixing by Mark Pittam. Original music composed and performed by Nicholas Alexander and Daniel Kempson. Music supervision from Jake Otajevic, Sandra shmueli and Max O'. Brien. Willard Foxton is creative director at Novel. Our executive producers are me, Michelle McPhee, Max O' Brien and Craig Strachan. The novel and Stephanie Lang, Katrina Norbel and Nikki Etor are the executive producers for IHear podcasts and the marketing lead is Allison Kanter. Special thanks to Carrie Lieberman, Will Pearson and and the whole team at wme.

[LifeLock Advertiser]

Lots of places can expose you to identity theft. That's why LifeLock monitors hundreds of millions of data points a second for threats to your identity, which is way more than anyone can do on their own. If we find anything suspicious like new loans or changes to your financials accounts, we alert you right away all through text, phone, email or the LifeLock app. Save up to 30% your first year. Visit lifelock.com iheart Terms apply.

[Michelle McPhee]

Hey everybody, Lady Luck here and we're

[Satara Kassim]

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[Jacob Kingston]

Spin Quest is a free to play social casino void where prohibited. Visit spinquest.com for more details.

[Bethenny Frankel]

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[Lavon Termenzian]

M&M's popped caramel do sound different.

[Michelle McPhee]

Oh, no. People are gonna be obsessed. What do you mean? Hmm. People hate the sound of chewing.

[Jacob Kingston]

Maybe they won't like the crunch. Maybe we're saved. Wait a minute.

[Michelle McPhee]

Yellow. Have you been eating them this whole time?

[Lavon Termenzian]

Mmm.

[Michelle McPhee]

So tasty.

[Lavon Termenzian]

Hands off us.

[Jacob Kingston]

M&M's popped caramel. It's more fun together.