An Orange County judge resigned Wednesday and declared his intent to plead guilty next week to defrauding a state fund out of thousands of dollars.<\/p>\n
Israel Claustro, 50, who touted his ability to help \u201cfoster trust in the American justice system\u201d during his 2022 judicial campaign, agreed to plead guilty to one count of mail fraud at his next court date Monday in U.S. Central District Court in Santa Ana.<\/p>\n
\u201cJudge Claustro violated the law for his personal financial benefit,\u201d First Assistant U.S. Atty. Bill Essayli said in a statement<\/a>. \u201cWe will not hesitate to prosecute anyone \u2014 judges included \u2014 who defraud public benefits intended to help those in need.\u201d<\/p>\n Claustro\u2019s Costa Mesa-based lawyer, Paul S. Meyer, said of his client in an emailed statement: \u201cHe takes full responsibility for his actions, and cooperated fully in the investigation. In good faith, with sadness, he is voluntarily resigning his judicial office.\u201d<\/p>\n In the plea agreement, signed Wednesday, the U.S. attorney\u2019s office is asking for home confinement as Claustro\u2019s punishment.<\/p>\n The crime carries a statutory maximum sentence of 20 years in federal prison, according to the office, and fines totaling tens of thousands of dollars.<\/p>\n A judge will ultimately decide his sentence.<\/p>\n Claustro founded a medical corporation, Liberty Medical Group of Rancho Cucamonga, in November 2015 even though he had no formal medical background, according to the plea agreement. California law requires owners of medical corporations<\/a> to be licensed in medicine or a related field.<\/p>\n The following April, he opened a business bank account with Kevin Tien Do, a doctor, employee and participant in the fraud, according to the plea agreement.<\/p>\n By October of that year, Do and other doctors working for Liberty began billing California\u2019s Subsequent Injuries Benefits Trust Fund, a workers\u2019 compensation fund for individuals already disabled or impaired at the time of a workplace injury, according to the plea agreement.<\/p>\n Liberty\u2019s practitioners provided medical legal evaluations, according to court documents.<\/p>\n By August 2017, however, Do was issued a notice by the Division of Workers\u2019 Compensation of its intent to suspend him for a previous fraud case, according to the plea agreement.<\/p>\n Do served a one-year federal prison sentence in 2003 for felony healthcare fraud.<\/p>\n This conviction led to his suspension in October 2017 from participating in the trust fund program, according to the plea agreement.<\/p>\n Do informed Claustro of his formal suspension in April 2018. Do appealed but ultimately had his indefinite suspension upheld by the California Workers\u2019 Compensation Appeals Board in October 2018, according to the plea agreement.<\/p>\n Nonetheless, Claustro still paid Do $306,000 for medical evaluations and reports performed after his suspension, according to court documents.<\/p>\n Do hired a medical professional, identified in court documents only as T.D., to perform patient evaluations during his suspension, according to court documents. T.D., however, did not assist in preparation or review of medical legal reports sent to the trust fund, according to court documents.<\/p>\n T.D. eventually died of natural causes in December 2021, according to court documents.<\/p>\n Reports prepared by Do after his suspension included the names of other doctors when the billing documents were sent to the trust fund, according to the plea agreement.<\/p>\n Claustro paid $38,670 of the $306,000 to Do knowing he, and not another medical practitioner, was providing the services, according to court documents.<\/p>\n For his part, Do pleaded guilty in January 2025 to one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return. He is still awaiting his sentencing.<\/p>\n Do continued to be reimbursed by the state until spring 2022, according to court documents.<\/p>\n Around that time, Claustro served as an Orange County prosecutor and was campaigning to become a county Superior Court judge. Claustro cruised to an outright victory in the June 2022 primary, beating challenger Kevin Brian Jones, 72% to 28%<\/a>.<\/p>\n His message throughout his campaign centered on his humble roots as the son of Mexican immigrants with a third-grade education.<\/p>\n