Last week, the Los Angeles Times published an investigative report exposing allegations of fraud in the handling of the Los Angeles juvenile sexual abuse cases by the Downtown L.A. Law Group. According to the article, a network of vendors allegedly paid cash incentives ranging from $20 to $200 to low-income individuals to sign up as plaintiffs. Some admitting they were coached to fabricate stories of abuse in county juvenile halls and foster homes. This occurred in connection with a historic $4-billion settlement involving nearly 11,000 plaintiffs, where the firm represented about one-fourth of the claimants. The firm has denied any involvement in or authorization of such payments, emphasizing its opposition to these practices and its rigorous vetting processes. For the full details, please read the article here: https://www.latimes.com/california/story/2025-10-02/settlement-story-ab218-sex-abuse.
Case Sellers Are Selling Fraud Cases in Most Mass Torts.
Building on this troubling revelation, I’ve personally heard several disturbing stories this week that underscore the growing problem of fraud in our industry. One involves a legacy case seller allegedly generating millions in fraudulent cases related to the LDS Church. Another pertains to a different legacy seller reportedly doing the same with millions in fraudulent video game addiction cases. Additionally, I’ve learned of major fraud schemes in the Uber/Lyft and Roblox litigation. Case sellers are accused of peddling invalid claims and its being exposed by companies like Smart Reviews.
Even more alarming is the emergence of entire industries dedicated to coaching individuals. Paying them $200 to $300, to provide the exact responses needed during intakes to qualify for cases. Legitimate intake companies are now forced to frequently change their screening questions, because these fraudsters have memorized the scripts and know precisely how to game the system. This has created a vast ecosystem of fraud feeding mass tort case sellers, fueled by Attorneys, Investors and lenders who lack a deep understanding of the mass tort space and how legitimate clients are fund, unwittingly pour money into these operations.
We saw similar issues during the Camp Lejeune litigation, but now it feels like every single week brings a new horror story of someone getting burned by purchasing fraudulent cases. How is this possible? How do these legacy case sellers remain in business? Why do attorneys continue to feed them money, and why aren’t private equity firms getting smarter with their investments? These are critical questions we must ask ourselves as an industry before external regulation, potentially from the government, steps in and reshapes our field entirely.
The Solution To Weed Out Fraud In Our Industry.
In our industry, accuracy and credibility are everything. That’s why we recommend Smart Reviews LLC, a trusted partner specializing in vetting case sellers and verifying client information.
- Verified medical records confirming the claimed injury
- Comprehensive client background checks
- Direct client interviews to uncover inconsistencies or red flags
They helps ensure that every case you purchase is legitimate and well-documented, protecting your firm’s reputation and saving you time on unqualified cases. Smart Reviews will also tell you if you are working with a fraudulent case seller.
Why wouldn’t law firms simply return to the tried-and-true methods of advertising on social media and television. This attract real clients, as has been done successfully since the 1970s? Why risk their careers and in some cases, their freedom for a larger caseload built on fraudulent foundations? Is it sheer greed? A desire for recognition among peers? I suspect many of these stories go unreported among lawyers because of the embarrassment of having bought fraudulent cases, allowing the fraudsters to persist unchecked. You guys are lawyers why are you letting this fraud persist?
Transparent Agencies Do Good Work In Our Industry.
That said, there are exemplary outfits in this industry doing things the right way, with transparency and integrity. Companies likeIntake Desk, Shield Legal, Mass Tort Ad Agency, Tort Group, Tortexperts, DemandLane, legalclaimassistant, A Case For Women and others that stand out with real advertising and transparency. If your agency prioritizes transparency and adheres to the standards of an Open Book Agency, you’re part of the solution.
I want to make a direct appeal to the sales teams in these shady operations: You know that what you’re doing undermines the legitimacy of real victims, don’t you? In the alleged fraud tied to the LA juvenile cases,nearly $1 billion of the $4 billion settlement could have gone to fraudulent claimants. These frauster never endured the sexual abuse that actual victims suffered. Is that really the legacy you want to pass on to your children?
If you’re a fraudulent case seller, it’s not too late to turn things around. Shift to legitimate in-house advertising that generates real cases, or partner with reputable ad agencies like mine to buy real advertising and resell real cases from genuine advertising efforts. This can be an honest, sustainable business if you choose to make it one. Will these be low-priced cases like the ones you’re selling today? No, they won’t; they’ll be at market price, as real advertising always produces market price cases.
Some of the biggest case sellers in the industry were my top clients when I started out 10 years ago, but now, with their bloated overhead, real cases have become too expensive for them.
Is this the story you want to tell your grandchildren? Let’s return to the old ways of doing business, before litigation finance distorted the landscape. Let’s focus on real advertising that helps real victims find justice.
Thank you for your attention to this important issue. I’m committed to fostering a cleaner, more ethical mass tort industry. I welcome your thoughts.
