Mastermind of $5 million unemployment fraud and accomplices sentenced to prison

The Investigations Division of the California Employment Development Department assisted in the investigation

SAN DIEGO – On August 29, 2024, David Constantin, the 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 to five years in prison and ordered to pay $5,178,276 in restitution to the state.

The plot's co-mastermind, Constantin Bobi Sandu, was charged separately and sentenced to 40 months in prison in 2023.

According to Constantin's 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 benefits.

Thirteen other defendants were charged on the same charges as Constantin with wire fraud and money laundering in connection with the unemployment fraud. Four of the defendants were convicted 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.

Other defendants include:

• Florentina Sima, wife of Buse, who was sentenced on May 29, 2024 to 15 months in prison and $28,350 in damages; and
• Florin Nicolae, who pleaded guilty and whose sentence is to be announced on August 30, 2024 at 9 a.m.

According to admissions in their plea agreements, these defendants filed fraudulent applications with the California Economic Development Department, falsely claiming to be U.S. citizens who were employed full-time and earned substantial income prior to the pandemic. To support these claims, the defendants submitted false documents, including fake W-2 forms purporting to be from their previous employers, fake health insurance cards, and fake utility bills to prove their claimed residency in California.

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

In some cases, the defendants claimed they needed the money to support their families and used the proceeds from the fraud to purchase luxury items. For example, Buse purchased a 2020 BMW for more than $100,000 and had it shipped to Romania.

The United States is seeking other defendants to bring them to justice.

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

defendant Case number 23CR2090-RBM

David Constantin, aka Vlad Alexandru Age: 28 Transient, Romanian

Eduard Buse Age: 31 years Romanian traveler

Leonard Miclescu Age: 49 Transient, Romanian

Constantin Iosif Constantin Age: 31 Transient, Romanian

Florentina Sima Age: 30 Transient, Romanian

Filip Nicolae Age: 31 Transient, Romanian

Florin Nicolae Age: 34 Transient, Romania

*Other defendants are not in custody and their names are blacked out

Investigative authorities

Federal Office of Investigation

San Diego Police Department Economic Crimes Unit

IRS Criminal Investigation

California Department of Employment Development Investigations Division

Ministry of Labor, Office of the Investigator General

US Department of Homeland Security