Date: 08-26-2024

Case Style:

United States of America v. David Constantin

Case Number: 3:23-cr-02090

Judge: Ruth Bermudez Montenegro

Court: The United States District Court for the Southern District of California

Plaintiff's Attorney: The United States Attorney’s Office for an San Diego

Defendant's Attorney:

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Description:

San Diego, California criminal defense lawyer represented the Defendant charged with $5 Million Unemployment Fraud Scheme
Mastermind of $5 Million Unemployment Fraud Scheme and Accomplices Sentenced to Prison

David Constantin, mastermind of a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic, was sentenced in federal court today to five years in prison and was ordered to pay $ $5,178,276 in restitution to the state.

The co-mastermind of the scheme, Constantin Bobi Sandu, charged separately, was sentenced in 2023 to 40 months in prison.

According to Constantin’s plea agreement, between July 2020 and August 2022, Constantin and Sandu conspired with 213 co-conspirators to fraudulently obtain at least $5,178,276 in California unemployment insurance benefits.

Thirteen other defendants were charged on the same indictment as Constantin with wire fraud and money laundering related to the unemployment fraud scheme. Four of the defendants were sentenced on July 31, 2024, and ordered to pay restitution to the state of California. They are:

Eduard Buse, 34 months and $244,050;
Constantin Iosif Constantin, 32 months and $281,000;
Leonard Miclescu, 15 months and $34,650; and
Filip Nicolae, 13 months and $26,250.
Additional defendants include:

Florentina Sima, wife of Buse, who was sentenced on May 29, 2024 to 15 months in custody and $28,350 in restitution; and
Florin Nicolae, who pleaded guilty and is scheduled to be sentenced on August 30, 2024, at 9 a.m.
According to admissions in their plea agreements, these defendants submitted fraudulent applications to the California Economic Development Department, falsely claiming to be United States citizens who had been employed full time prior to the pandemic, and who had earned substantial income. To substantiate these claims, the defendants submitted false documents, including fake Forms W-2 purporting to be from their prior employers, phony health insurance cards, and fake utility bills to support their claimed residence in California.

These defendants caused the California Employment Development Department to pay out hundreds of thousands of dollars in fraudulent benefits to individuals who were not entitled to those benefits. Many of them laundered their fraudulent proceeds by transferring funds to Romania.

In some cases, while claiming that they needed the funds to take care of their families, the defendants used the proceeds of the fraud to purchase luxury items. Buse, for example, purchased a 2020 BMW for more than $100,000 and shipped it to Romania.

Other defendants are being sought by the United States so that they can be held accountable.

This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie H. Chu.

Outcome:

Defendant was found guilty and sentenced to five years in prison and was ordered to pay $ $5,178,276 in restitution to the state


The co-mastermind of the scheme, Constantin Bobi Sandu, charged separately, was sentenced in 2023 to 40 months in prison.

Plaintiff's Experts:

Defendant's Experts:

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