81 Percent of Claims in LA's $4 Billion Sex Abuse Settlement May Be Fake — The Grift of the Century

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81 Percent of Claims in LA's $4 Billion Sex Abuse Settlement May Be Fake — The Grift of the Century

Los Angeles County District Attorney Nathan Hochman just filed a motion to slam the brakes on the largest government sex abuse settlement in American history — a staggering $4.8 billion payout — because his office has determined that 81 percent of the claims may be fraudulent. Not 8 percent. Not 18 percent. Eighty-one percent. Four out of five people lining up for a piece of this money may be lying.

And they call us the grifters.

According to the NY Post, Hochman filed the motion on Wednesday asking a Superior Court judge to delay all payouts until the end of 2026. A hearing is scheduled for 8:30 a.m. on June 15th. The DA's office is investigating potential fraud committed not just by claimants, but by the attorneys, recruiters, and medical professionals who helped them file. That's right — this isn't a few bad actors gaming the system. This is an entire industry built around turning a real tragedy into a $4 billion ATM.

Hochman didn't mince words. "False reporting of sexual abuse undermines our entire justice system and is a grave disservice to actual victims who have already suffered unspeakable trauma," the District Attorney said. He added, "My Office is taking the allegations seriously that some individuals were paid cash to have law firms file false sexual abuse claims against the County. This is criminal conduct that abuses the law and steals from victims and taxpayers."

Paid cash. To file false claims. Let that sink in.

Here's how we got here. On April 4, 2025, LA County announced a $4 billion settlement to resolve over 6,800 childhood sexual abuse claims, mostly involving county juvenile and foster care facilities. The LA County Board of Supervisors approved it on April 29, 2025. Then in October 2025, a second tentative settlement of $828 million was reached covering 400 more cases. But once the floodgates opened, the claims kept pouring in — from the original 6,800 to over 11,000, with projections now exceeding 14,000 total. Cases allegedly date back to 1959, with the bulk from the 1980s, 1990s, and 2000s.

The whole bonanza was made possible by California Assembly Bill 218, which extended the statute of limitations for childhood sexual abuse victims. A noble idea on paper. In practice, it created a buffet line for every ambulance chaser in the state.

Hochman explained exactly why pausing the payouts matters for real victims: "Given the structure of the settlement, identifying and excluding ineligible claimants would ensure that those who are rightfully entitled to compensation receive a larger share." Translation — every fake claim steals money directly from someone who was actually abused as a child.

Meanwhile, LA County Chief Executive Officer Fesia Davenport has acknowledged the county is in "uncharted territory" with the financial pressure, and the county has already made $88.9 million in budget cuts trying to handle the fallout.

So let's recap. Real children were abused in county facilities — a genuine horror. Lawyers saw dollar signs. Recruiters hit the streets paying people cash to file fake claims. Doctors apparently helped paper over the fraud. And now 81 percent of the claims stink so badly that the DA himself is begging a judge to stop writing checks.

This is what happens when victimhood becomes currency. The actual victims — the ones who suffered real abuse in real facilities — get buried under an avalanche of fraudulent claims while the trial lawyers cash their 40 percent contingency fees either way. The taxpayers of Los Angeles County foot a multi-billion-dollar bill. And the grifters? They walk away counting their money.

Hochman set up a fraud hotline at (844) 901-0001. Here's hoping it rings off the hook.


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