Israel Claustro, a judge in Orange County, has resigned following his guilty plea to fraud charges. The announcement came on a Wednesday, coinciding with federal prosecutors revealing details of his involvement in a scheme with Dr. Kevin Tien Do.
Details of the Fraud Scheme
Claustro collaborated with Do to defraud the Subsequent Injuries Benefits Trust Fund, designed to provide compensation for injured workers who already had disabilities. Claustro owned Liberty Medical Group Inc., where Do worked until his suspension from the worker’s compensation program in 2017 due to a prior conviction for healthcare fraud.
Plea Agreement Insights
- Claustro admitted to paying Do over $300,000 for fraudulent medical evaluations.
- Reports were submitted to the worker’s comp program under the names of other doctors.
- Only about $38,000 of the funds were paid out after Claustro was aware of Do’s ineligibility.
In his resignation statement, Claustro expressed deep regret for his actions, affirming his cooperation in the investigation. He emphasized that his misconduct did not connect to his judicial duties or previous prosecutorial role.
Potential Consequences
Claustro faces a possible maximum sentence of 20 years for mail fraud. However, federal prosecutors have indicated they will recommend probation with home confinement instead of prison time as part of the plea agreement. The agreement also mentions potential criminal tax violations, with ongoing investigations from the FBI and other authorities.
Updates on Co-Conspirator
Dr. Kevin Do has also pleaded guilty to related charges but has yet to receive a sentence. His case is still open, pending further legal proceedings.
This situation underscores the significant implications of judicial misconduct. El-Balad will continue to follow developments in this case as further legal actions unfold.
