Eduard Buse, $5 Million Unemployment Fraud, California 2024

A San Diego couple, Eduard Buse and Florentina Sima, have pleaded guilty in federal court to fraud and money laundering charges. The indictment alleged that the fraud scheme involved helping hundreds of undeserving applicants apply for unemployment benefits using fraudulent documents.

The scheme resulted in almost $5.2 million in bogus claims paid by the state of California, according to the plea agreements. Buse and Sima admitted to participating in the scheme, which was meant to provide critical financial relief during the pandemic.

The defendants' abuse of programs designed to help people in need during and in the wake of the Covid pandemic is particularly despicable, said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. Even worse, they took money intended to help people keep their heads above water and showered themselves with luxury items.

Buse admitted to collecting $28,350 in undue EDD benefits for himself and facilitating payouts of $244,050 to 14 co-conspirators, including Sima. He also purchased a 2020 BMW X6 for $105,044 in Glendale, California, with proceeds from the fraud and shipped it from San Diego to Romania on April 28, 2023.

As part of their plea agreements, Buse and Sima agreed to forfeit the BMW, cash and luxury watches, along with all other property seized in connection with the case. Buse also agreed to forfeit $128,902.99 and pay restitution in the amount of $244,050 to the State of California Employment Development Department. Sima agreed to forfeit $58,881.53 and pay the same amount in restitution to the State of California Employment Development Department.

Buse and Sima are scheduled to be sentenced on May 20, 2024, at 9 a.m. before U.S. District Judge Larry A. Burns. This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu.

Defendant: Eduard Buse, 30

Criminal Charges: Fraud and money laundering

City and State: San Diego, California

Date: February 15, 2024

Sentence or outcome: Pleaded guilty, awaiting sentencing

Dollar amounts: $5.2 million in bogus claims, $28,350 in undue EDD benefits, $244,050 in payouts to co-conspirators, $105,044 for a 2020 BMW X6, $128,902.99 in fraud proceeds, $58,881.53 in fraud proceeds

Source: https://www.justice.gov/usao-sdca/pr/husband-and-wife-plead-guilty-5-million-unemployment-fraud-scheme