Santa Ana, CA – Orange County Superior Court Judge Israel Claustro submitted his resignation today after agreeing to plead guilty to charges brought against him by federal prosecutors.
Judge Claustro, elected to the office in the 2024 election, served on the Family Law Panel of the Court. He has been on leave since the beginning of the year.
The Court and judicial officers are ethically prohibited from discussing pending or impending cases before any court or related media reports.
Orange County Judge Agrees to Plead Guilty to Knowingly Paying Convicted Doctor to Work on Workers’ Comp Cases Despite Suspension
SANTA ANA, California – An Orange County Superior Court judge was federally charged today with defrauding California’s workers’ compensation program.
Israel Claustro, 50, was charged via information with one count of mail fraud, a crime that carries a statutory maximum sentence of 20 years in federal prison.
Claustro signed a plea agreement – also filed in court today – in which he agreed to plead guilty to the felony charge. Claustro is expected to make his initial appearance on January 12 in United States District Court in Santa Ana.
Claustro has agreed to resign from his position as a judge.
“Judge Claustro violated the law for his personal financial benefit,” said First Assistant United States Attorney Bill Essayli. “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 – who was an Orange County prosecutor at the time of the fraud – operated Liberty Medical Group Inc., a Rancho Cucamonga-based medical corporation, despite being neither a physician nor a medical professional as required under California law.
One of Liberty’s employees was Dr. Kevin Tien Do, 60, of Pasadena, a physician who had served a one-year federal prison sentence after being convicted in 2003 of felony health care fraud. Because of this conviction, in October 2018, Do was suspended from participating in the California’s workers’ compensation program. Claustro was aware of Do’s prior criminal conviction and suspension from California’s workers’ compensation program.
According to the plea agreement, Claustro admitted that he defrauded California’s Subsequent Injuries Benefits Trust Fund (SIBTF), a special fund administered by California’s workers’ compensation program to provide additional compensation to injured workers who already had a disability or impairment at the time of a subsequent injury.
Specifically, Claustro paid Do more than $300,000 for preparing medical evaluations, medical record reviews, and med-legal reports after Do’s suspension. Claustro caused Liberty to mail these reports to California’s SIBTF, concealing that they were prepared by Do by listing other doctors’ names on the billing forms and reports. Based on these fraudulent submitted reports, Liberty received hundreds of thousands of dollars from SIBTF.
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.
In connection with this scheme, 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. Do is expected to be sentenced in the coming months.
The FBI, IRS Criminal Investigation, and the California Department of Insurance are investigating this matter.
Former Special Assistant United States Attorney Stephanie Orrick of the Orange County Office prosecuted this case.
OCDA Todd Spitzer Reacts
Orange County District Attorney Todd Spitzer issued the following statement regarding the federal charges filed against former Orange County prosecutor and current Orange County Judge Israel Claustro for defrauding California’s workers’ compensation program:
“The Orange County District Attorney’s Office fully cooperated with the federal government investigation into the illicit activities of former prosecutor Israel Claustro, including providing all requested documentation during the duration of the federal investigation. Claustro did not follow established OCDA office policy which requires approval of any outside employment, a procedure which is intended to safeguard against potential conflicts of interest. He betrayed his position of trust as a public servant in the most deceitful way by stealing public benefits from those who needed them the most, and he did so while masquerading as a warrior for truth and justice on behalf of the People of California.”
The case against Judge Claustro
On January 7, 2026, federal prosecutors announced that Israel Claustro, a judge on the Orange County Superior Court, had agreed to plead guilty to one count of mail fraud and resign from his judicial office by January 12, 2026.
Details of the Case
- The Scheme: Claustro was accused of secretly operating a medical corporation, Liberty Medical Group Inc., despite not being a medical professional as required by state law.
- Fraudulent Billing: While still a prosecutor for the Orange County District Attorney’s office, Claustro allegedly collaborated with a physician, Dr. Kevin Tien Do, who had previously been convicted of health care fraud and was suspended from the workers’ compensation system.
- Concealment: Claustro reportedly paid Do to prepare medical reports but submitted them under other doctors’ names to hide Do’s involvement and defraud California’s Subsequent Injuries Benefits Trust Fund.
- Financial Impact: Prosecutors estimated the specific fraud related to this scheme resulted in a loss of approximately $38,670 in state funds, though the medical group itself generated hundreds of thousands of dollars during the operation.
Legal Status (as of Jan 2026)
- Plea Agreement: Claustro signed a plea agreement on January 7, 2026, the same day he was officially charged.
- Potential Sentencing: While the charge of mail fraud carries a maximum sentence of 20 years in federal prison, prosecutors have recommended a sentence of home confinement and probation due to his cooperation and voluntary resignation.
- Resignation: Claustro is expected to formally resign from his position in the family law section of the O.C. Superior Court by Monday, January 12, 2026.
Response from Judge Claustro’s attorney
Paul S. Meyer, attorney for Judge Claustro, stated: Judge Claustro 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.
He takes full responsibility for his actions, and cooperated fully in the investigation. In good faith, with sadness, he is voluntarily resigning his judicial office.