Exclusive video: Feds bust fraud ring accused of stealing $47M in COVID, small business loans

"If you are taking money from the government that doesn't belong to you, your door could be the next one that we're hitting," said U.S. Attorney for California's Central District, Bill Essayli.

Fox News was exclusively embedded with DHS in the multi-agency sting that included the IRS and the Small Business Administration.

Thirteen of the suspects are Armenian-born but have become naturalized. At least one of the suspects faces deportation.

"This is the police. We have a warrant. Come out with your hands up!" one officer's voice echoed on a loudspeaker attached to an armored vehicle with agents inside. The special unit inside the armored vehicle first cut the chain on a gated driveway and then demanded one of the targeted suspects come out of his L.A.-area home in a sunrise bust.

The wanted suspect is Armenian born and uses the name William McGrayan. He surrendered to police in the bust, slowly walking out of his front door towards the armored vehicle with his hands over his head. The criminal complaint says that an informant described McGrayan as "unhinged" claiming he talked about his ties to gangs in Armenia and threatened one person with a gun and baseball bat.

Investigators say McGrayan is the brains of the crime ring that applied to steal $47 million in federal funds and got away with around $30 million. Court documents read that the suspects allegedly used phony documents including fake bank and tax papers to create multiple shell companies that applied for the federal funds.

The suspects are charged with a range of crimes from conspiracy, wire and bank fraud to money laundering.

Authorities say some of the money was spent on houses and luxury goods, other amounts were sent to Armenia, making it harder for the U.S. to trace.