On Wednesday, January 7, 2026, the U.S. Attorney’s Office of the Central District of California announced that Orange County Superior Court Judge Israel Claustro, 50, has been federally charged with one count of mail fraud related to defrauding California’s workers’ compensation program.
Claustro, who has signed a plea agreement, is expected to plead guilty to the felony charge. As part of the agreement, Claustro has agreed to resign from his position as a judge. If convicted, he faces a maximum statutory sentence of 20 years in federal prison.
First Assistant United States Attorney Bill Essayli stated that the prosecution of Claustro demonstrates the office’s commitment to prosecuting anyone, including judges, who defraud public benefits programs intended to aid those in need.
The plea agreement reveals that Claustro operated Liberty Medical Group Inc., a Rancho Cucamonga-based medical corporation, while he was an Orange County prosecutor. According to California law, such a corporation must be run by a physician or medical professional, which Claustro is not.
Dr. Kevin Tien Do, 60, of Pasadena, was employed by Liberty Medical Group. Do had previously been convicted of felony health care fraud in 2003, for which he served a one-year federal prison sentence. As a result, Do was suspended from participating in California’s workers’ compensation program in October 2018. Claustro was aware of Do’s prior conviction and suspension.
Claustro admitted to defrauding California’s Subsequent Injuries Benefits Trust Fund (SIBTF), which provides additional compensation to injured workers with pre-existing disabilities who sustain subsequent injuries.
According to the plea agreement, Claustro paid Do over $300,000 to prepare medical evaluations, medical record reviews, and med-legal reports after Do’s suspension. Claustro then caused Liberty to mail these reports to the SIBTF, concealing Do’s involvement by listing other doctors’ names on the billing forms and reports. As a result of these fraudulent submissions, Liberty received hundreds of thousands of dollars from SIBTF.
The loss amount attributed to Claustro’s participation in the scheme is approximately $38,670, which represents the amount SIBTF paid to Liberty based on reports Claustro knew Do had drafted after his suspension from the program.
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 in connection with the scheme. Do is awaiting sentencing.
