District Attorney to Investigate Fraud Allegations in Los Angeles County Sex Abuse Settlement

Los Angeles County District Attorney Launches Fraud Investigation into Historic Sex Abuse Settlement

Los Angeles County’s district attorney has initiated a wide-ranging investigation into allegations of fraud within the largest sex abuse settlement in U.S. history, targeting claims that plaintiffs fabricated stories to secure payouts from the county’s $4-billion agreement.

District Attorney Nathan Hochman announced Wednesday that his office is probing reports that individuals submitted false claims of sexual abuse in juvenile detention facilities after being recruited with small cash payments. The investigation follows a Los Angeles Times exposé that uncovered nine people who said they were paid between $20 and $200 by recruiters to file lawsuits against the county. Four of these individuals openly admitted to fabricating their claims.

“They looked at this opportunity to compensate these true victims of sex abuse as an opportunity to personally profit and engage in some of the most greedy and heinous conduct,” Hochman said during a news conference at downtown’s Hall of Justice. “We are going to aggressively go after them.”

All nine plaintiffs identified in the Times investigation had their cases filed by Downtown LA Law Group, a personal injury firm representing approximately 2,700 claimants in the settlement. The firm has denied any wrongdoing in the matter. The Times reported that the firm’s recruiters allegedly approached vulnerable individuals outside county social services offices where many were seeking food assistance and financial aid.

According to Hochman, the investigation is still in its early stages but already indicates that the reported cases represent just a fraction of what he called a “significant number of fraudsters involved in these settlement claims.” The district attorney emphasized that the inquiry will focus primarily on the higher-level participants—attorneys, recruiters, and medical practitioners who may have submitted fraudulent documentation—rather than the plaintiffs themselves.

Many of those who admitted to filing false claims were described as economically disadvantaged and housing insecure individuals who desperately needed the money offered by recruiters. Recognizing this vulnerability, Hochman offered a form of immunity to those who come forward with information.

“If you provide us truthful information, complete information, any of the words that you use will not be used against you,” Hochman stated, though he clarified this offer does not extend to attorneys or medical professionals involved in the scheme.

While singling out Downtown LA Law Group as a focus of the investigation, Hochman indicated the probe would extend to anyone facilitating fraudulent claims. “I’m happy to label that entire group as a group of fraudsters conspiring to defraud a settlement where the money should be going to legitimate sex abuse survivors and victims,” he said.

The law group has maintained its innocence, stating it only seeks “justice for real victims” of sexual abuse. The firm declined further comment following Hochman’s announcement.

The investigation comes amid mounting pressure from multiple quarters. The Los Angeles County Board of Supervisors has already launched its own inquiry into potential misconduct by legal representatives involved in the lawsuits and established a public tip hotline. The board has also implemented measures to prohibit “predatory solicitation” outside county social services facilities.

Additionally, California lawmakers, labor leaders, and legal organizations have called for the State Bar to investigate potential ethical violations. Under California law, paying individuals to procure clients—a practice known as “capping”—is generally prohibited.

The wave of sex abuse claims followed the implementation of AB 218, a California law that took effect in 2020 extending the statute of limitations for victims of childhood sexual abuse. This legislation has triggered thousands of lawsuits against school districts, government agencies, and religious institutions throughout the state.

The county’s agreement to pay $4 billion this spring was intended to resolve thousands of claims from people allegedly abused in county-run juvenile detention centers and foster homes decades ago. In October, the county reached a second settlement worth $828 million for similar claims.

Hochman emphasized the severe financial impact these settlements will have on county services. To fund the settlement payments over the next five years, most county departments face budget cuts, including a $24 million reduction to the district attorney’s own budget.

“Every penny that a fraudster gets is a penny taken away from a sex abuse victim that validly and legitimately suffered that abuse at the hands of someone [in] Los Angeles County,” Hochman said. “It is not free money.”