In a recent press release from Justice.gov, Constantin Sandu of Romania, a suspected organized crime figure, was arrested and charged by the U.S. Attorney's Office, Southern District of California for masterminding a scheme to steal more than $5 million in California unemployment insurance benefits intended to help workers impacted by the pandemic. Sandu was found to have conspired with 214 unnamed Romanian co-conspirators across California and in Romania to fraudulently obtain millions of dollars in California unemployment insurance benefits.
According to the complaint, Sandu and his co-conspirators fraudulently obtained the benefits by fabricating documents, creating fictitious accounts and businesses, and filing bogus claims with California’s Economic Development Department, which administers the state’s unemployment benefits. The scheme also used false identities, falsified earnings statements, falsified W2s, fraudulent Health Insurance cards and non-existent companies to obtain the most benefits possible.
San Diego FBI arrested Sandu at the Imperial Beach Border Patrol Station on March 1, 2023. He is scheduled to make his first appearance in federal court this afternoon before U.S. Magistrate Judge Allison H. Goddard at 2 p.m.
“The pandemic may be waning, but we are still aggressively investigating allegations of COVID relief fraud. The scheme alleged in this case diverted millions of dollars from those who truly needed it.” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.
The state's unemployment insurance benefits were intended to help struggling California workers survive the pandemic, and the scheme alleged by Sandu has diverted millions of dollars from those truly in need. The FBI and other investigating agencies will continue to identify those who commit pandemic-related fraud and hold them accountable for their crimes.
See more in News.