“It is gratifying to know that investigators at the local, state and federal level are still committed to finding those who schemed to steal from unemployment benefit funds during the COVID-19 pandemic. This is important work protecting public funds from fraud so that they are available for those who truly need assistance.”
CSLEA President Alan Barcelona
SAN DIEGO – An indictment partially unsealed November 16, 2023, charges 14 defendants with fraud and money laundering offenses for a scheme centered around fraudulent unemployment applications submitted to the California Employment Development Department during the pandemic. The indictment alleges the fraud netted the defendants nearly $5.2 million in funds from the state of California.
According to the indictment, David Constantin, and Constantin Bobi Sandu, who was arrested and charged separately in March 2023, helped hundreds of applicants apply for EDD benefits using fraudulent documents. Constantin and Sandu recruited potential applicants through Facebook and met applicants at parks throughout Southern California to complete the application process. Applicants paid Constantin or Sandu a partial fee up front for assisting with fraudulent applications and another fee after applicants received EDD payments.
The indictment alleges that from July 2020 to August 2022, Constantin transmitted more than $128,000 in fraud proceeds to associates in Romania. Another defendant who fraudulently obtained EDD benefits with Constantin’s help, Eduard Buse, allegedly transmitted almost $129,000 to Romania in the same period. Buse also purchased a 2020 BMW X6 with over $105,000 in cash fraud proceeds in December 2022 and shipped the vehicle to Romania. Several other defendants also transmitted fraud proceeds to accounts in Romania.
David Constantin was arrested in Romania at the request of the United States on November 13th by Romanian authorities who also served search warrants and seized, among other things, the BMW with California license plates. The Department of Justice will seek Constantin’s extradition to the United States. Buse and defendants Leonard Miclescu, Constantin Iosif Constantin and Florentina Sima were arrested in California and Texas. Nine other defendants remain at large.
Investigative agencies:
- Federal Bureau of Investigation
- San Diego Police Department Economic Crimes Unit
- IRS Criminal Investigation
- California Employment Development Department Investigative Division
- Department of Labor Office of Inspector General
- U.S. Department of Homeland Security
