SANTA ANA, Calif.
An Orange County Superior Court judge has agreed to plead guilty to federal mail fraud charges for knowingly paying a suspended and previously convicted doctor to perform work on California workers’ compensation cases, prosecutors said.
Israel Claustro, 50, was charged by information with one count of mail fraud, which carries a maximum sentence of 20 years in federal prison. Court records show Claustro signed a plea agreement filed Tuesday and is expected to make his initial appearance Jan. 12 in U.S. District Court in Santa Ana.
As part of the agreement, Claustro has agreed to resign from the bench.
“Judge Claustro violated the law for his personal financial benefit,” First Assistant U.S. Attorney Bill Essayli said in a statement. “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 committed the fraud while he was an Orange County prosecutor.
Prosecutors said he operated Liberty Medical Group Inc., a Rancho Cucamonga-based medical corporation, even though he was not a physician or other licensed medical professional, as required under California law.
One of Liberty’s employees was Dr. Kevin Tien Do, 60, of Pasadena, who previously served a one-year federal prison sentence after being convicted in 2003 of felony health care fraud. Because of that conviction, Do was suspended in October 2018 from participating in California’s workers’ compensation program. Prosecutors said Claustro knew of Do’s criminal history and suspension.
Despite the suspension, Claustro paid Do more than $300,000 to prepare medical evaluations, record reviews and medical-legal reports, according to court documents.
Claustro then caused Liberty to mail those reports to California’s Subsequent Injuries Benefits Trust Fund, a workers’ compensation fund that provides additional benefits to injured workers with preexisting disabilities.
Prosecutors said Claustro concealed Do’s involvement by listing other doctors’ names on reports and billing forms.
As a result of the fraudulent submissions, Liberty received hundreds of thousands of dollars from the fund.
The loss attributable to Claustro’s conduct is approximately $38,670, representing payments the trust fund made based on reports Claustro knew had been prepared by Do after his suspension, authorities said.
Do pleaded guilty in November 2024 to one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return.
His sentencing is pending.
The investigation is being conducted by the FBI, IRS Criminal Investigation, and the California Department of Insurance.