An investigation into jewelry thefts in San Diego led police to a transnational fraud ring headed by a mastermind who also had his hands in unemployment benefits fraud.
While many San Diegans sat out the pandemic unemployed, the extra benefits through California's EDD program kept them afloat.
A complaint filed in federal court last Thursday details how Romanian national Constantin Sandu allegedly found a way to help himself to over $5 million in unemployment insurance benefits without being a U.S. citizen, owning a company or working for one.
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"It is quite shocking," Assistant U.S. Attorney Jessica Adeline Schulberg said. "He’s the leader of a transnational criminal organization working with hundreds of coconspirators."
With the help of social media, Sandu recruited 214 people to pretend to be unemployed and collect unemployment benefits, according to Adeline Schulberg.
"There were widespread Facebook messages looking for individuals wanting to apply for EDD fraud," she explained. "They certainly weren’t quiet about what they were doing.”
Sandu created several shell companies, including Kraftsman Construction Co., Bless Tires & Auto Repair, TLC Cleaning and Hood Cleaning Service, according to the complaint. He learned and developed a process to receive the most benefits possible by using fraudulent identifications, utility bills, earnings statements, W2s and fraudulent health insurance cards.
“Perhaps there could have been more checks and balances, but the government felt it was sufficient the way it was handled to get this money out to people," Adeline Schulberg said.
Unemployment fraud is nothing new, but what's interesting about this case is it grew out of the San Diego Police Department’s investigation of jewelry thefts on the streets of Mira Mesa. Investigators say some of the same people are involved in both cases — they're Romanian nationals and even come from the same town.
NBC 7 obtained a copy of security video showing a 72-year-old Vietnamese grandmother who was attacked across the street from her Kenova Street home a week before Christmas.
Two women stole her necklace; an important piece of heirloom jewelry. Two years earlier, using pickpocket and sleight-of-hand techniques, a couple stole a family necklace from Soune Souphy.
“I have never seen a grown man cry," Jennifer Souphy said about her father. "He said, 'They took my necklace,' and he was so sad for months about it because it meant something to him."
Throughout SDPD's investigation, detectives determined many Romanian organized crime groups conducted numerous jewelry thefts, frauds and swindles throughout Southern California, according to the complaint.
“It was overall the same group of people, the same transnational organized crime group that we were looking at," Adeline Schulberg said.
Police have made 13 arrests in connection with the jewelry heists and 30 more people are being sought for questioning.
Sandu is due in federal court March 16 for a preliminary hearing. He faces one count of wire fraud.
If convicted, he could be sentenced to 12 to 15 years in prison.
