A couple involved in a multimillion-dollar unemployment benefit fraud during the COVID-19 pandemic has pleaded guilty to federal charges. Eduard Buse, 30, and Florentina Sima, 29, Romanian nationals without a permanent U.S. address, acknowledged their involvement in a fraud scheme that siphoned more than $5 million from relief funds earmarked for struggling workers in California, authorities said.
In a federal courtroom today, both Buse and Sima admitted to fraud and money laundering charges as part of a conspiracy that entailed filing fraudulent claims on behalf of hundreds of unqualified applicants. The scheme drained nearly $5.2 million of California unemployment benefits, according to official statements. “These covid relief funds were meant to provide critical financial relief during the pandemic, Instead, the money was used to buy luxury cars and jewelry,” U.S. Attorney Tara McGrath stated.
"The Covid-19 pandemic placed an enormous financial strain on millions of Americans; however, some individuals decided to use other people's pain as an opportunity for financial gain," said FBI San Diego Special Agent in Charge Stacey Moy. Moy emphasized the FBI's commitment to prosecuting those who exploited the pandemic for personal profit. Special Agent in Charge Tyler Hatcher from IRS Criminal Investigation expressed disgust at the selfish misappropriation of funds to assist those in dire need.
Detailing the misuse of funds, Buse's plea agreement revealed his illicit gains of $28,350 and his facilitation of an additional $244,050 in fraudulent payouts to 14 co-conspirators, including Sima. They also sent a substantial part of the stolen funds, $128,902.99 by Buse and $58,881.53 by Sima, back to Romania using money service businesses. Notably, Buse bought a luxury 2020 BMW X6 with fraud proceeds before it was intercepted and seized by Romanian authorities upon request from the United States. Among the seized luxury items were high-end watches valued at tens of thousands of dollars.
As a part of their plea agreements, Buse and Sima agreed to forfeit the seized BMW, cash, and the luxury watches, which amounted to a part of the fraudulent gains. Buse consented to forfeit $128,902.99 and to pay restitution of $244,050 to the California Employment Development Department (EDD), as did Sima, who will forfeit $58,881.53 and pay the same amount in restitution. The couple is scheduled for sentencing on May 20, with potential maximum penalties of thirty years in prison for the wire fraud and twenty years for money laundering.
