Los Angeles County’s $4-billion settlement addressing sexual abuse claims in county-run juvenile facilities faces renewed uncertainty as District Attorney Nathan Hochman called for a halt to the initial round of victim payouts. With the first payments scheduled to be disbursed next week, Hochman requested a six-month delay, citing concerns over widespread fraud and alleging that as many as 80 percent of claims may be fabricated. The move has prompted a stark divide among officials, attorneys, and survivors.
Hochman launched an investigation last November following a media report suggesting some claimants had falsely asserted abuse or county custody. He told Superior Court Judge Lawrence Riff that databases accessible to his office revealed many claimants were never in the county facilities where they alleged abuse occurred. Hochman contended that criminal prosecutors possess a superior ability to identify potentially fraudulent claims compared to the current civil vetting process, which involves two judges appointed by the county.
Judge Riff expressed incredulity at the opposing positions taken by county officials, highlighting a rare conflict between the county counsel’s office, which supports proceeding with the payouts, and the district attorney’s call for a freeze. “We have the county counsel’s office telling me this payment program should go forward, and I have the D.A. saying it shouldn’t,” Riff said. He declined to issue an immediate ruling on the delay, scheduling another hearing for June 25 while instructing lawyers to pause distributions temporarily.
Plaintiffs’ attorneys and abuse survivors strongly oppose delaying the payouts. Raymond Boucher, representing hundreds of victims, warned this could result in as much as $30 million lost to high-interest loans borrowers have taken against their expected compensation. Many plaintiffs are impoverished and reliant on the funds to cover urgent medical or psychological care. Nate Cervantes, a survivor who sued over abuse at two county facilities, described deep frustration at repeated delays and mounting debt. Others expressed alarm at allegations branding them fraudulent without transparent evidence.
Critics of Hochman’s investigation note that many records documenting juvenile residency were destroyed under state law and complain that the district attorney’s fraud indicators have been “imperfect.” Attorneys cited cases, including one client flagged as fraudulent despite school transcripts confirming their presence at a county facility. Several lawyers called for more transparency from Hochman, who has so far limited disclosure of his evidence to a confidential meeting with the judge.
The settlement, approved in April 2025, is the largest of its kind in the nation and covers more than 11,000 claims of sexual abuse in Los Angeles County’s juvenile halls, foster homes, and a children’s shelter. It followed California’s extension of the statute of limitations for childhood sexual abuse survivors.
County outside counsel Andy Baum refrained from endorsing the delay but cautioned that further postponements could jeopardize the entire settlement. He acknowledged plaintiffs’ attorneys warned that extended controversy threatens to “blow up” the deal and cause an economic crisis for victims.
As the controversy unfolds, the tension between ensuring prompt justice for victims and safeguarding against potential fraud remains at the forefront of the legal battle over one of the largest abuse settlements in U.S. history.