California
California trial attorneys push bills to rein in ‘bad actors’ in legal industry
A group of California trial lawyers is backing a package of bills aimed at policing their industry by ramping up the penalties for attorneys who recruit clients illegally or prioritize the desires of hedge fund investors.
The Consumer Attorneys of California, a prominent trade group, said it is supporting two bills this session meant to crack down on the “small number of bad actors engaged in illegal conduct that threatens to undermine public trust” in the state’s legal bar.
The group said the bills, introduced Monday by Assemblymembers Ash Kalra (D-San José) and Rick Chavez Zbur (D-Los Angeles), were a response to recent Times investigations involving California lawyers. The Times found nine clients within L.A. County’s $4-billion sex-abuse settlement who said they were paid to sue and, in some cases, fabricate claims that became part of the historic payout. Another story examined opaque investor financing arrangements used by some firms.
“We’re not trying to insulate ourselves from accountability,” said Douglas Saeltzer, president of the attorney group, in an interview. “There needs to be consequences.”
The bill introduced by Zbur would disbar any attorney who is convicted of illegally soliciting clients. Kalra’s bill would ban private equity firms and hedge funds from dictating case strategy after giving money to a law firm.
Plaintiff’s attorneys say the legislative push is an attempt to clean up their profession’s image. It comes amid efforts by companies and governments frequently targeted by lawsuits to rein in a barrage of litigation.
Uber is pushing a measure for the November ballot that would limit how much lawyers can collect in fees for car crash cases, encouraging Californians to “stop the billboard lawyer scam.” A coalition of California counties has simultaneously begun circulating language to lawmakers that would limit attorneys’ ability to sue over older sex-abuse cases, pointing to recent allegations of fraud.
Zbur’s legislation, Assembly Bill 2039, would require the State Bar strip the license of any attorney with a felony conviction for a practice known as capping, in which law firms directly solicit or procure clients to sign up for lawsuits. Currently, attorneys convicted of capping can face suspension or probation, but are eligible to keep their license.
Under the bill, the attorney also would be disbarred for a misdemeanor capping conviction if the lawyer “acted knowingly and for financial gain.”
“It really is making very clear that if you’re engaging in this kind of capping, then there’s going to be a consequence,” Zbur said.
All clients who said they were paid to sue L.A. County over sex abuse were represented by Downtown LA Law Group, one of Southern California’s largest personal injury firms. The firm, also known as DTLA, is under investigation by the district attorney, the State Bar and L.A. County.
DTLA has denied any wrongdoing and said its lawyers “operate with unwavering integrity, prioritizing client welfare.”
Zbur’s bill also would provide whistleblower protections to people who report on attorney misconduct and tighten the rules around client loans. California is one of the few states where lawyers can lend money directly to clients.
Other states have barred the practice, concerned that direct loans give an attorney too much leverage over their clients.
The second bill introduced Monday, AB 2305, is aimed at the rising trend of private equity firms and hedge funds lending money to law firms and profiting from the payouts. The Times reported in December that investors were financing some of the flood of sex-abuse litigation against L.A. County.
Supporters of litigation finance say it gives attorneys the funding they need to take on deep-pocketed corporations and represent victims who can’t afford to sue on their own. Critics say investors can secretly sway case strategy, putting their profit before the best interests of a client.
“These Wall Street investors are salivating,” Kalra said. “This is just gonna clearly say, ‘No, no more. We’re not gonna allow these types of investments to influence the practice of law.’”
Kalra’s bill would bar investors from weighing in on litigation, such as who the firm should take on as a client and when they should settle a case. Any contracts that allow investor influence would be void under the law.
It’s unclear how the restrictions would be enforced. It’s often difficult to tell when an investor is financing a firm’s caseload, much less whether they’re exerting influence on a case.
Lawyers already are barred under the State Bar’s rules from allowing a third party to dictate case strategy and are barred in many cases from sharing legal fees with a nonlawyer.
“We’re finding that’s not enough,” Kalra said. “We actually need clear statutory safeguards.”
California
First look: Space Shuttle Endeavour in ready-to-launch position at California Science Center
LOS ANGELES – This fall, space fans will get to see the Space Shuttle Endeavour like never before in its new permanent home at the California Science Center in the Exposition Park area.
What we know:
The new Samuel Oschin Air and Space Center at the California Science Center officially opens on November 13.
Also, an introductory film includes footage from Endeavour’s final launch before being retired in 2011.
“We felt from the beginning this is the most impressive way to see the space shuttle and it gives people views that almost no one ever got a chance to see,” said Jeff Rudolph, President & CEO of the California Science Center.
What they’re saying:
Since 2012, Los Angeles has been home to the Space Shuttle Endeavour. It has been on display horizontally at the California Science Center.
But the vision was always to have it on display upright.
“It’s really exciting and everyone who sees it is in awe and that’s really what we were trying to do was create that real sense of emotional high and inspire people to learn more,” said Rudolph.
This is the only display of its kind and it can’t be duplicated. The orange tank attached to the shuttle is the last mission-ready one in existence.
“I think what we’ve done is present something that is going to be a truly life-changing and transformative experience for education,” said Kenneth Phillips, Curator for Aerospace Sciences at the California Science Center.
Visitors will also be able to see inside the space craft that carried astronauts to space 25 times, including Mae Jemison, the first Black woman to go to space and now-Arizona Senator Mark Kelly.
When the exhibit opens to the public in November, visitors will be able to ride up an elevator alongside the space shuttle and view it from the top.
“That’s the view that nobody but the crew saw. That was a very special vantage point. Nobody got to do that,” said Phillips.
What’s next:
The California Science Center expects the exhibit to be popular. Tickets will go on sale well before the opening.
Redwood Valley, Calif. — A 5.6 magnitude earthquake shook Northern California on Wednesday morning, according to the U.S. Geological Survey.
The quake was centered 7 miles north of Redwood Valley in Mendocino County, north of Ukiah, and east of Highway 101. It had a depth of 5.0 miles.
A ShakeAlert notification went off on many people’s phones moments before the earthquake hit at 8:10 a.m., initially forecasted as a 6.1 magnitude quake by the U.S. Geological Survey (USGS) and downgraded moments later.
People across Northern California felt the quake. Reports came in from as far away as Eureka, Redding, Sacramento, and the Bay Area. Most people reported light to moderate rolling and shaking.
Since the initial quake, several aftershocks have hit the same area. Three smaller quakes between 2.6-2.7 magnitude were detected in the same area between 8:17 a.m. and 9:06 a.m., and are expected to continue.
So far, there have not been any reports of major damage or injuries.
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California
DOJ charges 10 Southern California defendants in largest federal healthcare fraud crackdown in US history
Laura Ingraham: Fraudsters beware!
The Department of Justice announces the largest healthcare fraud takedown in U.S. history, charging 455 defendants across 45 states. They allegedly stole $6.5 billion from Medicare and Medicaid through wound care schemes and other fraudulent claims. Some funds were used for luxury homes and vehicles like a $135,000 Maserati.
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Federal authorities on Tuesday charged 10 Southern California defendants in a series of healthcare fraud schemes, including one case involving nearly $270 million in fraudulent Medi-Cal claims and another that allegedly defrauded Medicare out of approximately $27 million.
The charges were part of the Justice Department’s broader “2026 National Health Care Fraud Takedown,” which resulted in charges against 455 defendants nationwide in schemes involving more than $6.5 billion in alleged fraud.
Acting Attorney General Todd Blanche described the operation as “the greatest combined federal and state effort in combating healthcare fraud in history.”
“Fraudsters can no longer rip off American taxpayers,” Blanche said during a news conference announcing the initiative. “If you seek to harm or cheat Americans, we will find you, seize any assets and prosecute you to the fullest extent of the law.”
FBI ADDS 2 FUGITIVES TO ‘MOST WANTED FRAUDSTERS’ LIST AMID HISTORIC $6.5B HEALTHCARE TAKEDOWN: PATEL
Acting Attorney General Todd Blanche speaks during a news conference announcing what federal officials described as the largest healthcare fraud takedown in U.S. history, resulting in charges against 455 defendants nationwide. (Ken Cedeno / AFP via Getty Images)
In the Central District of California, federal prosecutors brought criminal charges against 10 defendants accused of defrauding government-funded healthcare programs or abusing their positions as medical professionals to illegally prescribe controlled substances.
The U.S. Attorney’s Office for the Central District of California said five individuals were arrested in the greater Los Angeles area for allegedly participating in a scheme that involved submitting nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs.
Among those charged was Christina Mareik, 61, also known as Christina Marie Sanchez Hernandez, of Whittier.
HOSPICE FRAUD USES STOLEN IDENTITIES FOR FAKE PATIENTS
The Justice Department announced charges against 10 Southern California defendants in connection with multiple healthcare fraud schemes. (Department of Justice)
Prosecutors allege Mareik helped facilitate fraudulent prescriptions that generated nearly $270 million in claims to Medi-Cal, which ultimately paid out more than $178 million.
According to prosecutors, the claims involved expensive drugs containing low-cost generic ingredients that were either not medically necessary or were never provided to the purported recipients.
Authorities said Mareik also sent thousands of fraudulent prescriptions to a co-conspirator and caused the submission of fraudulent prescriptions under her own name.
LOS ANGELES HOSPICE FRAUD REACHES BILLIONS AS MEDICARE PROVIDERS SCAM FEDERAL SYSTEM WITH FAKE COMPANIES
Federal prosecutors allege Southern California defendants participated in schemes that defrauded Medicare and Medi-Cal of hundreds of millions of dollars. (Department of Justice)
Mareik was arrested June 17 and charged with healthcare fraud.
The charges also include a San Fernando Valley man accused of operating hospice care companies that fraudulently billed Medicare approximately $27 million, according to prosecutors.
Prosecutors also charged Oren David Shachar, 59, of Van Nuys; Abraham Shin, 66, of Corona; and Jeannie Choi, 57, of Torrance.
The three defendants face a 16-count indictment alleging they conspired to defraud Medicare out of approximately $27 million.
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The charges include conspiracy to commit healthcare fraud, healthcare fraud, aggravated identity theft, monetary transactions involving criminally derived property exceeding $10,000, and violations of the Anti-Kickback Statute.
Fox News Digital’s Alexandra Koch contributed to this report.
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