Judge Resigns After Pleading Guilty to Fraud in OC Superior Court

OC Superior Court Judge Resigns Following Fraud Plea

In a stunning turn of events, Orange County Superior Court Judge Israel Claustro announced his resignation on Wednesday after federal prosecutors revealed he had agreed to plead guilty to fraud. The case centers around his collaboration with Dr. Kevin Tien Do to exploit California’s worker’s compensation program, particularly the Subsequent Injuries Benefits Trust Fund (SIBTF), which is designed to provide additional financial support to injured workers with pre-existing disabilities.

Judge Claustro’s signed plea agreement clearly outlines his involvement in the fraudulent scheme, indicating he was aware that Do had been suspended from the worker’s compensation program due to a previous felony conviction for healthcare fraud. Despite this knowledge, Claustro employed Do, compensating him over $300,000 to conduct medical evaluations and prepare med-legal reports. These fraudulent documents were then submitted to the worker’s compensation program under the names of other medical professionals, exacerbating the severity of his actions.

Upon announcing his voluntary resignation through attorney Paul Meyer, Judge Claustro expressed deep regret over his actions while maintaining that they were unrelated to his judicial responsibilities. Meyer emphasized Claustro’s cooperation in the investigation and his acceptance of full responsibility for his misconduct. The implications of such fraudulent activities raise serious concerns about the integrity of the judicial system, particularly given Claustro’s former role as a prosecutor.

Prosecutors revealed that only about $38,000 in funds from the worker’s compensation program were disbursed after Claustro became aware of Do’s ineligibility to submit medical evaluations. This amount is now considered in the guilty plea agreement, which indicates the extent of Claustro’s participation in the fraudulent activities. As a result, federal authorities have recommended a sentence of probation with conditions of home confinement, rather than the potential 20 years in prison that Claustro could face for mail fraud.

In addition to the fraud charges, the plea agreement highlights ongoing investigations by the FBI, IRS, and the California Department of Insurance into possible criminal tax violations involving Judge Claustro. This dimension of the case suggests there may be further legal repercussions beyond his current guilty plea. Meanwhile, Dr. Kevin Tien Do also pleaded guilty to related charges earlier this year, although his sentencing has yet to occur, adding another layer of complexity to this ongoing saga.

As the legal community and the public reflect on this scandal, the resignation of Judge Claustro serves as a poignant reminder of the need for accountability among judicial officers. The case not only highlights individual misconduct but also raises questions about systemic vulnerabilities in the worker’s compensation program meant to protect vulnerable workers. With the ripple effects still unfolding, the hope is that this incident will spur reforms to strengthen oversight and integrity within California’s judicial and worker’s compensation systems.