"Los Angeles County will halt some payments from its $4-billion sex abuse settlement, leaving many plaintiffs on edge as prosecutors ramp up an investigation into allegations of fraud. L.A. County agreed last spring to the record payout to settle a flood of lawsuits from people who said they'd been sexually abused by staff in government-run foster homes and juvenile camps. Many attorneys had told their clients they could expect the first tranche of money to start flowing this month."
"But the county's chief executive officer, Joe Nicchitta, said Thursday that the county would "pause all payments" for unvetted claims after a request by Dist. Atty. Nathan Hochman. These are claims that have been flagged as requiring a "higher level of scrutiny," according to a joint report submitted Thursday by attorneys in the settlement. The district attorney announced he would investigate the historic settlement after reporting by The Times that found some plaintiffs who said they were paid to sue."
Los Angeles County agreed to a record $4-billion settlement last spring to resolve lawsuits from people who said they were sexually abused by staff in government-run foster homes and juvenile camps. County CEO Joe Nicchitta announced a pause on payments for unvetted claims after District Attorney Nathan Hochman requested increased scrutiny and an investigation. The paused claims were flagged for a "higher level of scrutiny" in a joint report by settlement attorneys. Hochman requested at least six months to complete investigative steps, warning that premature disbursement could interfere with witness cooperation and obscure financial trails. Prosecutors and the State Bar are pursuing inquiries into potential fraud.
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