A group of Romanian nationals accused of swiping hundreds of thousands of dollars in state food and assistance payments from some of LA County's poorest families appeared in federal court Thursday on charges of bank fraud and identity theft.
Prosecutors said members of the theft ring were arrested "in the act" after federal agents and LAPD detectives staked-out ATMs in the San Fernando Valley and Hollywood, where the California Department of Social Services had pinpointed several cash machines where cloned state benefit debit cards were being used to steal the payments before the intended recipients could retrieve them.
“I think one of the critical aspects, and why this fraud is so particularly deplorable, is how it targets vulnerable victims, low income individuals who need this money to survive," U.S. Attorney E. Martin Estrada told the I-Team.
Between August 2022 and January 2023, investigators said more than $38 million in assistance payments were stolen, much of the money drained from accounts at ATMs through the use of magnetic striped cards, like gift or debit cards, that had been overwritten with stolen account information.
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The assistance money was primarily from two California programs for low income families, CalFresh, which provides funds for food and household items, and CalWORKs, which helps pay for housing and other limited expenses. Recipients typically retrieve their payments or access the money through a state-issued electronic benefit transfer, or EBT, card.
“It’s important for us, important for the Department of Justice, to prosecute fraud generally, but especially important when you’re talking about vulnerable groups," Estrada said.
According to criminal complaints filed in U.S. District Court in Los Angeles, the 10 individuals arrested during the ATM stakeouts on Feb. 1 and March 1 were carrying numerous cloned cards and had pockets stuffed with cash.
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One man, identified as Sandu Dumitrescu, allegedly had 21 cloned cards with stickers on them with account balances and PINs written, and approximately $3,230 in cash when he was arrested near an ATM in Toluca Lake.
Agents said Dumitrescu initially produced a forged United Kingdom identification card before his actual identity was confirmed with by fingerprints.
Another man, Stefan Balint, was allegedly observed using numerous cards at ATMs during a stakeout along Topanga Canyon Blvd. and Sherman Way in Canoga Park on March 1.
"Law enforcement agents arrested Balint, who was found to possess approximately 13 cloned access devices on his person," federal agents wrote in an affidavit filed in court.
Twenty additional cloned cards were found in his car, according to the filing.
Federal prosecutors asked a magistrate to hold all of the accused in custody with no bail, as each was in the U.S. unlawfully, and some of the defendants allegedly admitted they'd crossed the Canadian and Mexican borders illegally.
The Department of Social Services did not respond to questions about how it is believed the thieves obtained the account information of the legitimate recipients en masse, but said in an emailed statement the agency is working with law enforcement.
"The Department is also working with California counties to support victims of theft. Counties are actively reimbursing victims of theft to ensure these vulnerable populations have access to these important benefits," the Department said.
"Any cardholder who suspects that they may have been a victim of theft should immediately contact their local county office. Cardholders can also contact the EBT Customer Service Line at (877) 328-9677 to cancel their EBT card and request a new one."
