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 is required under state law. 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.

Under Claustro’s direction, Liberty mailed the prepared reports to the trust fund while concealing the fact that Do had authored them “by listing other doctors’ names on the billing forms and reports.” As a result of the fraudulent submissions, Liberty received hundreds of thousands of dollars from the fund, officials said.

“The loss amount from Claustro’s participation in this scheme is approximately $38,670 – the amount SIBTF paid to Liberty based on reports Claustro knew Do had drafted after his suspension from SIBTF,” the press release states.

In response to the plead, Claustro’s attorney Paul Meyer released a statement that the judge, “deeply regrets his wrongful 2022 participation in a business venture that did not involve any part of his work as a district attorney and ended before he became a judge,” according to the Orange County Register.

“He takes full responsibility for his actions and cooperated fully in the investigation,” Meyer wrote. “In good faith, with sadness, he is voluntarily resigning his judicial office.”

In January 2025, Do pleaded guilty to one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return. Claustro is expected to be make his appearance in court on Jan. 12, with Do’s sentencing in the coming months.

The charge Claustro pleaded guilty to carries a statutory maximum sentence of 20 years in federal prison. Prosecutors are, however, reportedly recommending that the doctor serve time in home confinement over prison, as well as probation, the Orange County Register reported.