An Orange County Superior Court judge, Israel Claustro, has been federally charged with defrauding California’s workers’ compensation program. Claustro, 50, was charged with one count of mail fraud, which carries a maximum sentence of 20 years in federal prison. He signed a plea agreement and is expected to plead guilty to the felony charge. His initial court appearance is scheduled for January 12 in United States District Court in Santa Ana.
Claustro has agreed to resign from his position as a judge.
“Judge Claustro violated the law for his personal financial benefit,” said First Assistant United States Attorney Bill Essayli. “We will not hesitate to prosecute anyone – judges included – who defraud public benefits intended to help those in need.”
According to the plea agreement, Claustro operated Liberty Medical Group Inc., a medical corporation based in Rancho Cucamonga, while he was an Orange County prosecutor. He did so despite not being a physician or medical professional as required by state law.
Liberty Medical Group employed Dr. Kevin Tien Do, 60, of Pasadena. Do had previously served a year in federal prison after being convicted of felony health care fraud in 2003 and was suspended from participating in California’s workers’ compensation program in October 2018 due to that conviction. The plea agreement states that Claustro knew about Do’s criminal history and suspension.
Claustro admitted to defrauding California’s Subsequent Injuries Benefits Trust Fund (SIBTF), which provides additional compensation to injured workers who already have disabilities or impairments at the time of another injury. Specifically, he paid Do more than $300,000 for preparing medical evaluations and reports after Do’s suspension and then concealed Do’s involvement by listing other doctors’ names on billing forms sent through the mail to SIBTF. As a result of these actions, Liberty Medical Group received hundreds of thousands of dollars from SIBTF.
The loss attributed specifically to Claustro’s role is approximately $38,670—the amount SIBTF paid based on reports he knew were prepared by Do after his suspension.
Dr. Do pleaded guilty in January 2025 to conspiracy to commit mail fraud and subscribing to a false tax return; he is awaiting sentencing.
The FBI, IRS Criminal Investigation, and the California Department of Insurance are investigating this case.
Former Special Assistant United States Attorney Stephanie Orrick prosecuted the case out of the Orange County Office.
The U.S. Attorney’s Office for the Central District of California enforces federal laws through criminal prosecutions and civil representations across its region (official website). The office covers seven counties—including Los Angeles—and serves over 19 million residents (official website). It operates primary offices in Los Angeles with additional locations in Santa Ana and Riverside (official website). The office works closely with various law enforcement agencies at all levels (official website).
