California judge admits fraud, resigns over fake medical scheme

 January 8, 2026

A California judge has just confessed to a jaw-dropping fraud that siphoned off hundreds of thousands from a state fund meant for injured workers.

Orange County Superior Court Judge Israel Claustro, 50, has agreed to step down and plead guilty to federal mail fraud after masterminding a scheme to bilk California’s workers’ compensation system through a sham medical company.

As a former prosecutor with nearly two decades of experience handling heavy-hitting cases like murder and corruption, Claustro’s fall from grace is a stunning betrayal of the public trust he swore to uphold.

A Prosecutor's Descent into Deception

Back when he was still prosecuting criminals, Claustro set up Liberty Medical Group, despite lacking any medical credentials or legal right to do so under state law.

He then teamed up with Dr. Kevin Tien Do, a physician whose license was revoked after a 2003 felony conviction for health care fraud involving a staggering $300,000.

Together, they cooked up fake reports targeting California’s Subsequent Injuries Benefits Trust Fund, a program designed to support workers with additional compensation for injuries.

Fleecing Funds Meant for the Vulnerable

Their fraudulent submissions netted Liberty Medical Group hundreds of thousands of dollars, money that should have gone to hardworking folks already struggling with injuries.

While Claustro once handled high-profile cases with an iron grip on justice, he apparently saw no issue in gaming the system for personal gain.

First Assistant United States Attorney Bill Essayli didn’t mince words, declaring, “Judge Claustro violated the law for his personal financial benefit.”

Betraying the Bench and Public Trust

Essayli added, “We will not hesitate to prosecute anyone – judges included – who defraud public benefits intended to help those in need.”

That’s a refreshing stance in an era where too many elites seem to skate by on privilege, dodging accountability while regular Americans bear the cost of such schemes.

Claustro’s own words from a 2022 interview with the Asian Times now ring hollow: “I believe that serving as a judge requires humility, an open mind, independence, and commitment to the highest ethical standards of the law.”

Consequences Loom for Corrupt Scheme

Humility? Hard to see it when you’re rigging a system meant to protect the vulnerable, all while sitting on the bench as a supposed arbiter of fairness.

Claustro faces up to 20 years in federal prison for the mail fraud charge, while his partner in crime, Do, has already pleaded guilty to conspiracy and tax fraud, with sentencing pending in the coming months.

With Claustro’s initial court appearance set for January 12, the gavel of justice may soon fall on a man who once wielded it, reminding us that no title or robe shields anyone from accountability.

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