California judge to plead guilty in massive workers’ comp fraud scheme

Former California judge Israel Claustro is facing serious legal trouble after being accused of using a sham company to scam the state out of thousands of dollars in a fraudulent scheme involving workers’ compensation payments. Prosecutors allege that Claustro, along with a banned doctor named Kevin Tien Do, conspired to steal money from California’s Subsequent Injuries Benefits Trust Fund (SIBTF) through false reports submitted by their company, Liberty Medical Group.

The scandalous scheme began when Claustro, then a prosecutor, opened Liberty Medical Group without being a licensed medical professional as required by state law. He then hired Do, a disgraced doctor with a history of health care fraud convictions, to work for the company. Together, they prepared fake reports for SIBTF, resulting in Liberty receiving hundreds of thousands of dollars in fraudulent payments.

Claustro, a former prosecutor known for handling high-profile cases involving serious crimes such as murder, sexual battery, and political corruption, now finds himself on the wrong side of the law. He has agreed to resign and plead guilty to a federal mail fraud charge, which could lead to a maximum sentence of 20 years in prison. Do has already pleaded guilty to conspiracy to commit mail fraud and subscribing to a false tax return.

First Assistant United States Attorney Bill Essayli emphasized that no one, not even judges, will be spared from prosecution if they engage in fraudulent activities that defraud public benefits meant to help those in need. Claustro’s fall from grace serves as a stark reminder of the consequences of abusing power and betraying public trust.

Claustro is scheduled to make his initial court appearance on January 12th, marking a dramatic turn of events for a once-respected legal professional. As the case unfolds, the full extent of the scam orchestrated by Claustro and Do will come to light, shedding further light on the depths of corruption that can lurk within the justice system.