California judge pleads guilty to fraud

January 7, 2026

Orange County Superior Court Judge Israel Claustro

By KAREN VELIE

Federal prosecutors charged a 50-year-old Orange County Superior Court judge today with defrauding California’s workers’ compensation program. Israel Claustro has agreed to resign from his position as a judge, according to U. S. Department of Justice.

Facing one count of mail fraud, a crime that carries a statutory maximum sentence of 20 years in federal prison, Castro signed a plea agreement in which he agreed to plead guilty to the felony charge.

“Judge Claustro violated the law for his personal financial benefit,” said First Assistant U.S. Attorney Bill Essayli. “We will not hesitate to prosecute anyone – judges included – who defraud public benefits intended to help those in need.”

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, a physician who had served a one-year federal prison sentence after being convicted in 2003 of felony health care fraud. Claustro was aware of Do’s prior criminal conviction and suspension from California’s workers’ compensation program.

Nevertheless, Claustro paid Do more than $300,000 for preparing medical evaluations, medical record reviews, and med-legal reports after Do’s suspension. Based on the fraudulent reports, Liberty received hundreds of thousands of dollars.

In connection with this scheme, Do pleaded guilty in Jan. 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 U.S. Attorney Stephanie Orrick of the Orange County Office prosecuted this case.