Los Angeles County is seeking to pause payouts under a $4 billion child sex abuse settlement as authorities investigate what prosecutors described as “significant allegations of fraud,” the Los Angeles County District Attorney’s Office said Friday.
Fraud Allegations
The DA’s office announced that it filed a motion Thursday, asking a Superior Court judge to delay the payments until the end of 2026. The 34-page motion noted that investigators believe more than 80% of the claims were fabricated.
“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,” the motion stated.
A hearing for the motion was scheduled for 8:30 a.m. Monday, June 15, according to the DA’s office.
“This intervention is critical to safeguarding the rights of the legitimate child abuse survivors, including preserving the integrity of the settlement process,” District Attorney Nathan Hochman said. “It will also help ensure that individuals who have allegedly filed fraudulent claims are held accountable for exploiting the horrific abuse and trauma experienced by genuine survivors.”
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.
Original reporting: NBC4 Los Angeles — read the source article.