Orange County Superior Court judge Israel Claustro agreed to plead guilty to federal charges that he defrauded the California workers’ comp system, in particular the Subsequent Injuries Benefits Trust Fund, and will resign his position as a judge. Claustro is due to make an initial appearance in court January 12th to face a single count of mail fraud.
A former prosecutor in the Orange County District Attorney’s office, Claustro had a side gig at the time operating Liberty Medical Group in Rancho Cucamonga. Through Liberty, Claustro employed Dr. Kevin Tien Do to prepare medical evaluations, review medical records and submit med-legal reports in SIBTF claims.
Dr. Do pled guilty in November 2024 to a two-count federal indictment that he defrauded the SIBTF program (for past coverage see Multiple Parties…). Dr. Do was suspended from the workers’ comp system in 2018 for a prior health care fraud conviction, but under Claustro’s employ continued work on SIBTF claims. Federal prosecutors say Claustro paid Dr. Do more than $300,000 for these services after he had been suspended from the workers’ comp system but concealed the fact that the reports were prepared by him. During this same period the SIBTF program paid Liberty more than $3 million for work on SIBTF claims.
Claustro agreed to plead guilty to a single count of mail fraud that carries a sentence of up to 20 years in federal prison. Under the plea agreement, however, the government agreed to “recommend that defendant be sentenced to a term of probation with a condition of home confinement in lieu of imprisonment” if all conditions of the deal are met.