In a 34-page motion filed Wednesday in Los Angeles Superior Court, the District Attorney's Office stated that a preliminary criminal probe into possible fraud has led investigators to believe that as many as 81% of the damages claims may be bogus.
"In light of these findings thus far, District Attorney (Nathan) Hochman respectfully requests an additional temporary stay of the issuance and disbursement of settlement payments of six months until December 31, 2026, which should be sufficient time for the District Attorney's Office to complete its intermediate investigative review,'' prosecutors wrote in the motion.
Premature disbursement continues to pose a substantial risk of interfering with its investigation by complicating witness cooperation, obscuring financial trails, and impairing the office's ability to identify and prosecute fraudulent
activity, as well as unjustly enriching those engaged in fraud at the expense of true victims.''
Hochman announced last year that his office had opened a criminal investigation into allegations that some people may have submitted bogus damages claims to obtain part of the massive settlement approved by the county.
The Board of Supervisors approved a $4 billion settlement in April of last year involving roughly 11,000 claimants -- considered one of the largest sex abuse settlements in U.S. history. In October, the board approved another $828 million settlement with 414 other plaintiffs.
The various claims involved in the settlements were the result of AB 218, which temporarily lifted the statute of limitations on allegations of childhood sexual abuse. The claims included in the two settlements involve allegations dating back as far as 1959, targeting workers at the county Probation and Children and Family Services departments.
When it approved the most recent settlement in October, the Board of Supervisors directed county attorneys to investigate allegations that some people may have submitted phony abuse claims, or were paid to file lawsuits and
become plaintiffs in the litigation.
The terms of the settlement also called on the county to vet every claim and require every plaintiff to provide a written summary of the abuse they allegedly suffered, under penalty of perjury.
The Los Angeles Times reported last year that some plaintiffs in the $4 billion settlement were paid by vendors to sue the county, and in at least two cases, fabricate claims so they could become plaintiffs.
According to The Times, the plaintiffs in question were all represented by Downtown LA Law Group, or DTLA, which had more than 2,700 cases involved in the abuse settlement.
The law firm categorically denied paying anyone to sue, and said no representatives of the firm were ever authorized to offer people money. The firm told The Times it has hired an outside company to investigate if any false claims were made.
"The allegations in this story are extremely concerning and describe conduct that is contrary to our firm's values,'' the firm told The Times in a statement. "While we do not believe they are accurate, we are taking them seriously.''
According to The Times, its investigation found seven plaintiffs who said they were paid by "recruiters'' for a law firm to become involved in litigation against the county.
In announcing his criminal probe last year, Hochman said his office "is taking the allegations seriously that some individuals were paid cash to have law firms file false sexual abuse claims against the county. This is criminal conduct that abuses the law and steals from victims and taxpayers.''
Hochman said during a news conference Wednesday morning that people who may have submitted fraudulent claims can come forward voluntarily and cooperate with prosecutors and "describe every person who recruited them to participate.''
He said people who come forward and are truthful with investigators would be offered a measure of amnesty.
Anyone with information on allegedly false sex abuse claims or payments for false claims was urged to contact a county AB 218 fraud hotline at 844-901-0001 or visit fraud.lacounty.gov/ab218.
Some attorneys and plaintiffs in the the abuse settlement questioned Hochman's contention that 81% of cases may be fraudulent.
"I would love to know where they're getting these numbers from,'' Karlina Howard, who sued the county over abuse she said she suffered at the county's now-defunct Maclaren Hall, told The Times.
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