California Judge Pleads Guilty In Fraud Scheme Involving Convicted Doctor

An Orange County, California, Superior Court judge was federally charged with defrauding the state’s workers’ compensation program, according to a press release.

The U.S. Attorney’s Office for the Central District of California announced Wednesday that 50-year-old Israel Claustro was charged with one count of mail fraud. Officials said Claustro signed a plea agreement to the felony charge.

“Judge Claustro violated the law for his personal financial benefit,” First Assistant United States Attorney Bill Essayli said. “We will not hesitate to prosecute anyone – judges included – who defraud public benefits intended to help those in need.”

Claustro was elected to the Superior Court in 2022, serving in family court. According to officials, Claustro admitted to defrauding a special fund administered by the state’s workers’ compensation program known as California’s Subsequent Injuries Benefits Trust Fund (SIBTF).

The fund is designed “to provide additional compensation to injured workers who already had a disability or impairment at the time of a subsequent injury,” officials said.

Claustro defrauded the fund by operating a medical corporation, Liberty Medical Group Inc., despite not holding a physician or medical license, which state law requires. Through the operation, Claustro paid Liberty employee Dr. Kevin Tien Do more than $300,000 “for preparing medical evaluations, medical record reviews, and med-legal reports.”

In 2003, Do was convicted of felony health care fraud and served one year in federal prison. By 2018, he was suspended from participating in California’s workers’ compensation program. Despite the suspension, which Claustro was aware of, Do continued working for Liberty.