Man Arrested and Charged with Stealing Benefits from Low-Income Families

NEWS RELEASE SUMMARY - September 6, 2024

SAN DIEGO -Andrei Bogdan Arteni of Romania appeared in federal court in Los Angeles today to face charges in the Southern District of California that he conspired to steal hundreds of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities. He was ordered detained and will appear in federal court in San Diego for his next hearing.

Arteni was arrested in Santa Ana yesterday in connection with the thefts, which resulted in losses exceeding $580,000. According to the complaint, between October 2023 and March 2024, he and co-conspirators installed skimming devices at point-of-sale terminals in grocery stores and large-volume retailers in communities with higher concentrations of public benefit recipients. The data skimmed from government-issued benefit cards, known as EBT (electronic benefit transfer) cards, was then re-encoded onto the magnetic strips of fraudulent cards that they used to make tens of thousands of dollars in unauthorized ATM withdrawals over the course of several months.

Also yesterday, authorities served court-authorized search warrants at two storage units in National City and Newport Beach, and Romanian authorities served warrants on 10 residences across Romania. U.S. federal authorities seized more than $550,000 in cash, jewelry, and skimming devices. Romanian authorities seized two properties in the cities of Iași and Podu Iloaiei, along with more than $190,000 and €200,000 cash.

"Stealing public assistance funds from those who need it most takes greed to a new depth," said U.S. Attorney Tara McGrath. "With this case, we are enforcing laws designed to protect the security of electronic payment devices and ensure public confidence in everyday transactions."

"EBT fraud is especially devastating as it targets our most vulnerable community members and can cause extreme financial hardship," said Jason Reynolds, the Special Agent in Charge of the U.S. Secret Service's San Diego Field Office. "The U.S. Secret Service, and our partners remain committed to investigating these crimes so that those receiving these benefits do not have to worry about their benefits being stolen."

"Homeland Security Investigations is dedicated to working with our foreign law enforcement partners to disrupt and dismantle trans-national fraud groups who victimize U.S. banking institutions and government programs for their financial benefit," said HSI Los Angeles Special Agent in Charge Eddy Wang. "This case is an example of how HSI will go to great lengths to bring those who perpetrate these crimes to justice."

According to court documents, Arteni and his co-conspirators used false identities to rent out an Airbnb, a storage unit in Newport Beach, and a storage unit in National City. The storage unit in Newport Beach stored several household appliances with cash concealed inside-some of which were shipped to Romania.

According to the complaint, the brothers were linked to the crimes through surveillance photos at ATMs in San Diego County where they made fraudulent withdrawals. Victims are located throughout Southern California, including San Diego, Los Angeles and Riverside.

This case is being prosecuted by Assistant U.S. Attorneys Ronald Sou and David Kete. Valuable assistance was provided by the U.S. Attorney's Office for the Central District of California, U.S. Customs and Border Protection, Los Angeles Sheriff's Department, the National City Police Department, and Romanian authorities, including Romania Public Ministry Prosecutor's Office of DIICOT - Galați Territorial Service, Galați and Iași Police-Organized Crime Brigades.

If you or someone you know has had your EBT benefits stolen, San Diego County's Department of Health & Human Services Agency requires that the theft be reported within 10 days. More information for San Diego County victims is available at: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.

DEFENDANT Case Number 24MJ1934

Andrei Bogdan Arteni 35 Santa Ana

SUMMARY OF CHARGES

Title 18, U.S.C. §§1029(a)(2), (b)(1), and (c)(1)(A)(i) - Use and Attempted Use of Unauthorized Access Devices

Maximum Penalty: Ten years in prison, $250,000 fine

Title 18, U.S.C. §1029(a)(2), (b)(2), and (c)(1)(A)(i) - Access Device Conspiracy

Maximum Penalty: Ten years in prison, $250,000 fine

Title 18, U.S.C. §§ 982(a)(2)(B) and 1029(c)(1)(C) - Criminal Forfeiture

INVESTIGATING AGENCIES

Homeland Security Investigations, Los Angeles

United States Secret Service, San Diego

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.