An indictment has been partially unsealed revealing that fourteen defendants have been charged with fraud and money laundering offenses in a scheme involving fraudulent unemployment applications in California. The defendants, including David Constantin and Constantin Bobi Sandu, are accused of helping hundreds of applicants submit fraudulent documents to the California Employment Development Department (EDD) in exchange for fees. According to the indictment, the defendants profited nearly $5.2 million from the scheme. The investigation has also revealed that funds were transmitted to associates in Romania, leading to arrests in both California and Texas. The U.S. Department of Justice aims to extradite Constantin from Romania to the United States.
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Defendants and Charges
Defendant Names and Ages
The indictment in the $5 million California State Unemployment Fraud Scheme contains charges against 14 defendants. The names and ages of the defendants are as follows:
- David Constantin, Age: 27, Arges County, Romania, aka Vlad Alexandru
- Eduard Buse, Age: 30, Transient, Romanian
- Leonard Miclescu, Age: 49, Transient, Romanian
- Constantin Iosif Constantin, Age: 30, Transient, Romanian
- Florentina Sima, Age: 29, Transient, Romanian
- Additional defendants are not in custody and their names are redacted
Summary of Charges
The defendants in this case are facing multiple charges related to fraud and money laundering. The summary of charges includes:
- Conspiracy to Commit Wire Fraud (Title 18, U.S.C. § 1349)
- Wire Fraud (Title 18, U.S.C. § 1343)
- Conspiracy to Launder Monetary Instruments (Title 18 U.S.C. § 1956(h))
- Laundering of Monetary Instruments (Title 18 U.S.C. § 1956(a)(2)(A))
- Laundering of Monetary Instruments (Title 18 U.S.C. § 1956(a)(2)(B)(i))
The maximum penalties for these charges range from twenty to thirty years in prison, fines of up to $1 million, and the forfeiture of funds involved in the transportation, transmission, or transfer.
Scheme Overview
Introduction to the Fraudulent Scheme
The California State Unemployment Fraud Scheme involved a complex web of fraudulent activities aimed at obtaining funds from the California Employment Development Department (EDD) during the pandemic. The indictment alleges that the defendants engaged in a scheme to submit fraudulent unemployment applications using false documents.
Amount of Funds Obtained
According to the indictment, the defendants managed to obtain nearly $5.2 million in funds from the state of California through their fraudulent activities. The investigation revealed a significant amount of money flowing into accounts connected to the defendants.
Timeline of the Scheme
The fraudulent scheme began in July 2020 and continued until August 2022. During this period, the defendants carried out various activities to facilitate the submission of fraudulent applications and the subsequent transfer of funds. The timeline will be further examined as the investigation progresses.
Role of David Constantin and Constantin Bobi Sandu
Recruitment of Applicants
David Constantin and Constantin Bobi Sandu played a crucial role in the fraudulent scheme by recruiting applicants. The indictment alleges that they used social media platforms, particularly Facebook, to identify potential applicants. They would then arrange meetings with the applicants at parks throughout Southern California to assist them in completing the fraudulent applications.
Assistance with Fraudulent Applications
Constantin and Sandu provided comprehensive assistance to the applicants in navigating the application process. They guided them through the submission of false documents and ensured that the applications appeared legitimate. Their involvement increased the chances of approval for the fraudulent claims.
Payment Structure
The defendants implemented a payment structure to profit from their fraudulent activities. According to the indictment, applicants paid Constantin or Sandu a partial fee upfront for their assistance in submitting fraudulent applications. A second fee was required once the applicants received payments from the EDD. This payment structure allowed the defendants to profit from the fraud scheme.
International Connections
Transmission of Fraud Proceeds to Romania
The investigation revealed that David Constantin, the alleged mastermind of the scheme, transmitted more than $128,000 in fraud proceeds to associates in Romania between July 2020 and August 2022. Eduard Buse, another defendant who obtained EDD benefits with Constantin’s assistance, also sent nearly $129,000 to Romania during the same period.
Purchase of Luxury Vehicle
One of the defendants, Eduard Buse, used a portion of the fraud proceeds to purchase a 2020 BMW X6 worth over $105,000 in cash fraud proceeds. The vehicle was shipped to Romania, indicating the international reach of the fraudulent scheme.
Arrests and Extradition
Arrest of David Constantin in Romania
David Constantin was apprehended in Romania on November 13th, 2023, by Romanian authorities. The United States had requested his arrest, and Romanian law enforcement executed the arrest warrant. During the operation, search warrants were also served, and law enforcement seized assets, including a BMW with California license plates.
Arrests of Eduard Buse, Leonard Miclescu, Constantin Iosif Constantin, and Florentina Sima
Several other defendants also faced arrest in connection with the fraud scheme. Eduard Buse, Leonard Miclescu, Constantin Iosif Constantin, and Florentina Sima were arrested in California and Texas. These arrests demonstrate the joint efforts of law enforcement agencies to hold the defendants accountable for their actions.
Remaining Defendants at Large
Nine defendants named in the indictment remain at large. Law enforcement agencies are actively pursuing these individuals to bring them to justice and ensure that the full extent of the fraudulent scheme is uncovered.
Extradition Process
The Department of Justice will seek David Constantin’s extradition from Romania to the United States. The extradition process involves legal cooperation between the two countries and ensures that individuals charged with crimes in one jurisdiction are accountable in the other.
Prosecution and Collaboration
Prosecuting Attorneys
The prosecution of the case is being led by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu. They are entrusted with the task of presenting the evidence against the defendants and proving their guilt beyond a reasonable doubt.
Collaboration with International Authorities
The successful apprehension of David Constantin in Romania highlights the collaboration between U.S. law enforcement agencies and their international counterparts. The cooperation between the United States and Romanian authorities demonstrates the commitment to combatting transnational fraud schemes.
Involved Agencies
Several law enforcement agencies are involved in the investigation and prosecution of the California State Unemployment Fraud Scheme. These agencies include:
- 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
The joint efforts of these agencies are crucial in bringing the defendants to justice and dismantling the fraudulent scheme.
Summary of Charges
Conspiracy to Commit Wire Fraud
The defendants are charged with conspiracy to commit wire fraud under Title 18, U.S.C. § 1349. This charge alleges that the defendants knowingly conspired to devise a scheme to defraud the California Employment Development Department and obtain money by false pretenses.
Wire Fraud
The indictment includes charges of wire fraud under Title 18, U.S.C. § 1343. These charges allege that the defendants used electronic communications, such as the internet and email, to further their fraudulent scheme and deceive the EDD into providing funds.
Conspiracy to Launder Monetary Instruments
The defendants are also charged with conspiracy to launder monetary instruments under Title 18 U.S.C. § 1956(h). This charge accuses the defendants of conspiring to engage in financial transactions involving the proceeds of wire fraud.
Laundering of Monetary Instruments
Additionally, the defendants face charges of laundering of monetary instruments under Title 18 U.S.C. § 1956(a)(2)(A) and (B)(i). These charges assert that the defendants knowingly engaged in financial transactions involving the proceeds of the wire fraud scheme.
Involved Agencies
Federal Bureau of Investigation
The Federal Bureau of Investigation (FBI) played a significant role in investigating the California State Unemployment Fraud Scheme. The FBI’s expertise in financial crimes and its extensive resources were crucial in unraveling the intricate web of fraudulent activities.
San Diego Police Department Economic Crimes Unit
The San Diego Police Department’s (SDPD) Economic Crimes Unit contributed to the investigation by providing specialized knowledge and investigative techniques. The SDPD played a vital role in identifying and apprehending certain defendants involved in the fraudulent scheme.
IRS Criminal Investigation
The IRS Criminal Investigation Division played a crucial role in uncovering financial evidence related to the fraud scheme. Their expertise in conducting financial investigations and analyzing complex transactions was instrumental in building the case against the defendants.
California Employment Development Department Investigative Division
The California Employment Development Department’s Investigative Division collaborated with federal agencies to investigate the fraudulent unemployment applications. Their insights into the inner workings of the EDD and their cooperation were essential in understanding the scope of the fraudulent scheme.
Department of Labor Office of Inspector General
The Department of Labor’s Office of Inspector General (OIG) played a crucial role in the investigation by examining potential violations of federal labor laws and regulations. The OIG’s expertise in labor-related fraud added another layer of investigation to uncover any additional wrongdoing.
U.S. Department of Homeland Security
The U.S. Department of Homeland Security (DHS) actively contributed to the investigation and prosecution of the California State Unemployment Fraud Scheme. The DHS’s expertise in transnational crime and its collaboration with international partners were instrumental in apprehending defendants and seizing assets.
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Media Contact
Media Relations Director
For media inquiries regarding the California State Unemployment Fraud Scheme, please contact:
Media Relations Director: Kelly Thornton
Contact Information
- Phone: (619) 546-9726
- Email: Kelly.Thornton@usdoj.gov
Members of the media can reach out to Kelly Thornton for official statements, updates, and additional information related to the case.
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