LA DA Says Up To 81% Of Claims Against $4B Sex-Abuse Fund May Be Fraudulent — Payments Paused

Los Angeles County District Attorney Nathan Hochman told a judge that investigators believe widespread fraud may have infected claims against the county’s roughly $4 billion fund for survivors of childhood sexual abuse, asserting in court that as many as 81% of submitted claims could be invalid.

Hochman is investigating fraudulent claims in the sex abuse scandal. Katie Avery

DA Details Alleged Schemes

Speaking at a courtroom hearing, Hochman told Judge Lawrence Riff that investigators uncovered patterns including claimants who said they were abused at county facilities even though records show they were never housed there. He also described alleged medical-document fraud, saying some providers reported that certificates of merit submitted with claims bore signatures they did not authorize.

The LA County Board of Supervisors agreed to the payouts for victims. Some of the abuse dated back to the 80’s. NBC4

“We have spoken to medical providers who said that when someone claimed that provider signed a certificate of merit allowing the lawsuit to proceed, the signature was not authentic,” Hochman said in court.

Evidence And Process Concerns

Hochman told the court that some evidence cited by investigators was drawn from databases accessible only to the district attorney’s office. He asked for time to determine whether prosecutors can prove criminal fraud beyond a reasonable doubt and said his office has asked a civil court to pause disbursements for up to six months while investigations continue.

Hochman asked the judge to hault payments for six months. Katie Avery

Survivors’ Lawyers Push Back

Attorneys for survivors reacted angrily. Raymond Boucher, who represents many claimants, urged immediate payment, saying clients face severe hardship and that delaying funds could be life-threatening for some. “They are in dire need of this money. We negotiated for that process. It sickens me,” he told the judge. “I believe some of my clients will die before they get paid.”

The parties will be back in court June 25th. Katie Avery

Judge’s Ruling And Next Steps

Judge Riff ordered additional filings from the parties, set a June 22 deadline for written submissions, and scheduled another hearing for June 25. The court agreed that no disbursements would be made before that return hearing.

Context And Scope

The Board of Supervisors had approved payments on more than 11,000 claims from people who say they were sexually abused while in county custody at juvenile halls, foster homes and shelters. The April 2025 agreement set the fund at roughly $4 billion, surpassing the $2.6 billion settlement the Boy Scouts of America reached in 2022. Allegations span decades, with most claims dating from the 1980s through the 2000s and some going back to 1959.

Why It Matters

Prosecutors say unchecked fraud could divert limited resources from legitimate survivors and undermine public confidence in compensation programs. County officials have voiced separate concerns that proceeding with payments while fraud allegations remain unsettled could expose the county to legal and financial risk. Hochman said he supports prompt payouts to verified survivors and suggested prioritizing hardship cases for expedited review.

Legal Window: Many claims were filed after a 2020 California law temporarily suspended the statute of limitations for childhood sexual-abuse claims for a three-year window, allowing decades-old allegations to be litigated.