Corrupt California Judge Pleads Guilty in Sham Company Scam
It seems that this time, the judge won’t be the one banging the gavel in the courtroom. A shocking revelation has come to light about a California judge who used a sham company to defraud the state of thousands of dollars through fraudulent workers’ compensation payments and the involvement of a banned doctor, as per prosecutors.
The accused, Orange County Superior Court judge Israel Claustro, aged 50, has agreed to resign and plead guilty to a federal mail fraud charge. This scandalous scheme could potentially land him behind bars for up to 20 years, according to the US Attorney’s Office for the Central District of California.
The elaborate scam began when Claustro, who was previously a prosecutor, established a medical company named Liberty Medical Group, despite lacking the necessary qualifications as a physician or medical professional under state law, prosecutors revealed.
Furthermore, Claustro collaborated with a disgraced doctor named Kevin Tien Do, who had previously lost his medical license due to a 2003 conviction for felony health care fraud amounting to $300,000. Together, they devised a plan to fabricate false reports for California’s Subsequent Injuries Benefits Trust Fund (SIBTF), a fund designed to provide additional compensation to injured workers.
Based on these deceitful submissions, Liberty Medical Group received substantial sums of money from the SIBTF, as per the attorney’s statement.
First Assistant United States Attorney Bill Essayli emphasized, “Judge Claustro violated the law for his personal financial benefit. We will not hesitate to prosecute anyone – judges included – who defraud public benefits intended to help those in need.”
Prior to his involvement in this scandal, Claustro had served as a prosecutor in Orange County for almost two decades, handling high-profile cases ranging from murder to political corruption.
Do has already pleaded guilty to charges related to the conspiracy and false tax returns and is awaiting sentencing. Claustro is set to make his initial court appearance on January 12.
