This time, he’s not wielding the gavel.
A judge in California exploited a phony company to scam the state out of thousands in fraudulent workers’ compensation claims, leading to a doctor’s expulsion from the program, as announced by prosecutors on Wednesday.
Israel Claustro, a former Orange County prosecutor known for handling serious crimes like murder and carjacking, has now resigned and agreed to plead guilty to federal mail fraud charges. Prosecutors indicated that he could face a maximum of 20 years in prison.
The U.S. Attorney’s Office for the Central District of California stated the scheme involved Claustro starting a medical firm, Liberty Medical Group, while he was still a prosecutor—despite lacking the necessary medical qualifications as mandated by state law.
To further complicate matters, he brought on Kevin Tien Du, a disgraced doctor whose medical license was revoked back in 2003 following his conviction for health care fraud, with a salary of $300,000, according to U.S. attorneys.
Together, they submitted misleading reports to the California Subsequent Injury Benefits Trust Fund (SIBTF)—a fund designed to provide extra support for injured workers. Thanks to these fraudulently filed reports, Liberty managed to siphon hundreds of thousands from the SIBTF, the attorneys reported.
Assistant U.S. Attorney Bill Esseri commented on the case, saying, “Judge Claustro violated the law for personal financial gain. We will not hesitate to prosecute anyone, including judges, who defraud public benefits meant to help people in need.”
Claustro spent nearly two decades as a prosecutor in Orange County, dealing with serious cases like murder, sexual assault, and political corruption. Interestingly, in a 2022 publication, he emphasized the need for humility and ethics in the judicial role.
Meanwhile, Du had already pleaded guilty earlier this year to conspiracy to commit mail fraud, as well as filing a false tax return, and awaits sentencing soon.
Claustro is set to make his first court appearance on January 12th.
