The rise of DTLA: Automobile crashes, surgical procedures and a $4-billion settlement

Sereen Banna stated the companions of Downtown LA Legislation Group referred to as her “Erin Brockovich” for her work serving to tons of sue over noxious fumes spewing out of a landfill in northern Los Angeles County.

An bold paralegal, Banna stated she embraced the position she had in empowering residents to tackle firms suspected of polluting their neighborhoods.

Her bosses have been proud, too, she stated. Banna, 28, recalled them saying she would make all of them billionaires sometime.

However in early 2024, Banna stated, she found a troubling development in a number of the agency’s most profitable circumstances: Purchasers who claimed they have been paid earlier than becoming a member of lawsuits.

On Dec. 16, Banna sued Downtown LA Legislation Group, also called DTLA, stating the agency failed to handle her complaints about “unlawful solicitation, in addition to misleading and unethical practices geared toward persuading people to turn into shoppers by misrepresentations.”

She accused the agency, which she left within the fall of 2024, of amassing plaintiffs by “practices that appeared designed to use susceptible people.”

DTLA referred to as the allegations “baseless,” saying they got here from a disgruntled former worker.

“Any allegations of fraud, paid referrals, or unethical practices by DTLA Legislation Group are usually not solely unsubstantiated, however false,” the agency stated in a press release. “We intend to battle this within the courtroom of regulation, the place the info will present that we function with unwavering integrity, prioritizing consumer welfare.”

Banna’s lawsuit caps a tumultuous 12 months for DTLA. A partnership between three childhood associates, DTLA has grown from a small agency targeted on automobile crash victims right into a civil litigation powerhouse, submitting hundreds of circumstances associated to the January wildfires and sexual abuse in authorities services. The agency filed practically 1 / 4 of the circumstances within the $4-billion intercourse abuse settlement authorized final spring by Los Angeles County — the biggest of its variety in U.S. historical past.

However the meteoric rise has drawn scrutiny.

The Occasions reported within the fall that 9 of the agency’s shoppers who sued over intercourse abuse in L.A. County services stated recruiters paid them to file a lawsuit, together with 4 who stated they have been advised to manufacture claims. The L.A. County district lawyer’s workplace is now conducting a probe into the allegations.

With the investigation pending, questions have lingered about how DTLA managed to amass so many plaintiffs so shortly. The Occasions spoke to greater than 40 of the agency’s shoppers and 10 former workers, a lot of whom described aggressive ways to herald new shoppers and reap earnings stretching again years.

Greater than a dozen individuals represented by DTLA in private harm circumstances stated they have been recruited at a disaster level of their lives with guarantees of huge payouts and pressured into costly surgical procedures that attorneys stated would make their case extra beneficial. The extra medical procedures, they have been advised, the extra damages attorneys might declare.

On the finish, some shoppers say, they have been left with a fraction of what they have been promised.

DTLA stated in a press release it exists “to assist shoppers by a number of the most troublesome moments of their lives.”

“That features serving to them keep away from pointless monetary stress whereas their circumstances are pending,” the agency stated. “Medical care choices are made solely by shoppers and their physicians.”

Banna stated in her lawsuit she “repeatedly complained” about how shoppers have been being solicited.

She stated in an interview she reported the primary paid landfill consumer she was conscious of — a girl who obtained a $20 present card — to her bosses in early 2024. In her lawsuit, she alleged “such conduct constitutes illegal and unethical conduct for attorneys.”

She stated her boss advised her the alleged funds can be investigated.

“At that time, I used to be reminded it was above my pay grade,” she stated.

‘A very large a part of the recruitment course of’

Banna stated she resigned from DTLA in October 2024, across the time the agency started pursuing a brand new cohort of shoppers: human trafficking victims who’d been abused in accommodations.

Banna stated certainly one of her colleagues, an consumption coordinator, advised her a person named Kevin Johnson had paid one intercourse employee $20 to come back into the workplace.

During the last two years, 5 ex-workers advised The Occasions, Johnson turned an more and more widespread sight on the agency as he began shepherding in shoppers he’d discovered to sue over intercourse abuse within the juvenile halls and the Eaton hearth. Like most former workers, the ex-workers requested anonymity, fearing skilled retaliation.

Johnson, a 54-year-old entertainer who hosts gospel brunches and soul nights in Inglewood in response to his social media, didn’t reply to messages or a letter left at his dwelling. The agency is at present representing him in a lawsuit over a Mid-Metropolis automobile crash.

California regulation bans a apply often called capping, through which non-attorneys solicit shoppers to hitch litigation with a agency. DTLA has denied working with cappers and Johnson didn’t reply to questions on his recruitment for the agency.

Former workers stated Johnson was liable for bringing in numerous shoppers.

“He’s a very large a part of the recruitment course of for Downtown LA,” stated Banna, who described how she was referred to as to do consumption with intercourse abuse shoppers after Johnson introduced them into the places of work of one of many companions.

Johnson wasn’t a DTLA worker, but employees say he was a well-recognized face across the workplace.

He was shut with the companions and chummy with workers, handing out fortunate $2 payments to employees final vacation season, three former workers stated. Two stated that at one level he had his personal swipe card, so he might come and go freely.

A digital path connects Johnson to DTLA’s consumer record.

The Occasions discovered greater than a dozen associates of Johnson’s on Fb who appeared to have a intercourse abuse lawsuit filed with the county. To do that, The Occasions cross-referenced a listing of county intercourse abuse plaintiffs represented by DTLA with Johnson’s Fb associates to see what number of shared figuring out particulars.

Larisa Ellis, whom Johnson describes on Fb as his spouse, paid somebody who later had a DTLA intercourse abuse lawsuit $50 at a social companies workplace in November 2024 with the fee caption “Thanks for utilizing our referral service,” in response to a Money app transaction. Ellis didn’t reply to a message and a letter left at their dwelling.

“DTLA doesn’t pay shoppers to retain our companies or for referrals,” the agency stated in a press release.

Nevada Barker and Austin Beagle, two former DTLA shoppers, beforehand advised The Occasions a person named Kevin, whose final title they didn’t know, paid them $100 every in DTLA’s workplace after they made false claims of intercourse abuse. Barker recognized Johnson by footage as the person who paid her.

The couple stated they have been underneath the impression they have been being compensated to be actors in a film. The agency later requested the courtroom to dismiss their lawsuits.

“He stated he labored for a referral service and the lawsuit wanted sufficient individuals to undergo,” stated Beagle. “He didn’t work for the regulation workplace.”

‘Inform her I bought $ for her’

A number of shoppers advised The Occasions they have been supplied cash by DTLA associate Farid Yaghoubtil if they may discover individuals to join lawsuits with the agency.

“He referred to as it an development, ” stated LaShelle Allison, 53, a former consumer who stated she referred a number of automobile accident victims for Yaghoubtil. “Right here’s $250,’ ‘Right here’s $650,’ ‘Right here’s $500 for hire.”

California is among the few states the place legal professionals are allowed to mortgage shoppers cash.

The State Bar has a normal rule that legal professionals are usually not speculated to pay “private or enterprise bills.” The bar makes exceptions that embody if the consumer guarantees in writing to repay the mortgage, for offering funds to advertise “the pursuits of an indigent individual,” and for “advancing prices” to guard a consumer, with compensation contingent on the end result of the matter.

DTLA stated in a press release that it affords small loans to shoppers “in restricted conditions.”

“The agency has supplied small, interest-free micro-advances to assist with short-term wants like non permanent housing or primary bills, particularly so shoppers don’t really feel compelled to show to third-party lenders,” the agency stated. “These advances are completely voluntary, by no means tied to medical or authorized choices, and are solely recovered if a case is efficiently resolved.”

Akeem Smith, 40, had DTLA sue on his behalf a minimum of 4 instances, twice for automobile crashes, as soon as after he was punched at an evening membership and once more over a purchasing cart mishap at Ceremony Assist.

Smith referred 10 potential shoppers to Yaghoubtil, practically all automobile crash victims, in response to textual content messages between the 2 males. In return, Smith stated, he was advised he’d be compensated, although he stated he was upset to search out he was by no means paid for the shoppers he referred.

As a substitute, Smith stated he obtained month-to-month advances of about $2,000 based mostly on potential settlements the agency was anticipating in his circumstances.

Smith stated he would encourage shoppers to join circumstances with DTLA however didn’t pay them. He advised some about cash Yaghoubtil was providing.

“Inform her I bought $ for her,” Yaghoubtil texted Aug. 9, 2022, relating to a girl who Smith stated had been in an accident and was contemplating not transferring ahead with the agency. “Get her again for me.”

After The Occasions reached out to DTLA searching for touch upon the allegations made by Smith, Yaghoubtil texted Smith asking him to inform the reporter that “all the things you advised her was a lie” and to remind The Occasions that he was nonetheless a consumer of the agency, in response to a message Smith shared.

The following day, after telling The Occasions he deliberate to enter DTLA’s workplace, Smith falsely accused the reporter by way of textual content of harassment and failing to reveal they have been a journalist.

In August, Smith made an ill-fated try to sue the agency, representing himself in a lawsuit accusing them of conserving an excessive amount of of his settlement cash. He requested for the case to be dismissed a month later.

Smith stated he turned depending on the agency for earnings and, typically, shelter. In the summertime of 2022, Smith moved right into a downtown constructing the place he paid hire to Yaghoubtil’s uncle, in response to textual content messages between the 2 males. The handwritten lease, rife with misspellings, stated he might keep there till he “seatel his case whit Dawntow Legislation Group.”

Smith stated he made month-to-month journeys to choose up checks from DTLA, which was offering him cash for his hire, payments, meals and automobile repairs, in response to mortgage statements and textual content messages between the 2 males.

Smith stated he flitted out and in of homelessness throughout that point — his first time ever with out steady housing.

“After I met you I had my very own all the things,” Smith texted Yaghoubtil July 18, 2022 “Now I don’t even have garments.”

Listed in Smith’s telephone as “Farid Ferrari,” Yaghoubtil replied, “What occurred to the cash you bought?”

Landlords, landfills and ‘incentives in alternate for signatures’

Downtown LA Legislation Group, based in 2016, is run by three longtime associates.

Yaghoubtil, 42, is cousins with founding associate Daniel Azizi, 43. They met Salar Hendizadeh, 44, in elementary faculty, in response to an interview they did with a industrial actual property firm.

All attended Beverly Hills Excessive Faculty collectively, yearbooks present.

Hendizadeh left the agency in October, in response to a letter despatched to employees this month. The observe didn’t clarify why however stated Hendizadeh “can’t be conducting any agency associated enterprise.” He didn’t reply to an inquiry from The Occasions.

Many consumers who spoke to The Occasions stated that among the many companions, Yaghoubtil particularly vied onerous to get their enterprise.

In January 2019, William Brighton, who was within the VA hospital recovering from a automobile accident, requested a decide for a restraining order in opposition to Yaghoubtil, accusing him of constructing “quite a few visits on the hospital to coerce (and bribe) me to retain them as counsel.”

He stated Yaghoubtil supplied him $1,000 to change from his present regulation agency, in response to the request for a restraining order. Brighton later requested a decide to dismiss the case.

DTLA didn’t deal with questions in regards to the restraining order request.

The agency expanded shortly, outgrowing 4 totally different places of work earlier than touchdown this 12 months in a 52,000-square-foot headquarters within the Arts District. They moved past their bread-and-butter fare of non-public harm, including departments for mass torts — circumstances that entails hundreds of individuals suing over the identical factor — and housing regulation.

The trio moonlighted as landlords themselves, proudly owning an condo constructing throughout the road from their East Hollywood workplace. They have been sued by a number of items in 2023 and 2024 over residing situations, together with allegations of infestations of rats, vermin and cockroaches that tenants stated made their lives “a residing hell.” One of many circumstances settled for $2 million, in response to courtroom information.

The companions have been charged in October 2024 with a misdemeanor for failing to keep up the constructing. The case was dismissed and the constructing is now demolished.

Round 2024, their mass torts enterprise started booming, beginning with the landfill lawsuits, through which the agency accused the operators of recklessly permitting nauseating odors.

Heather Stone stated she noticed representatives of DTLA in search of individuals for landfill circumstances outdoors a Santa Clarita Walmart in 2024, certainly one of two residents who advised The Occasions they noticed representatives on the retailer who gave the impression to be recruiting shoppers.

Banna stated in an interview that she later realized some shoppers for the landfill circumstances had been receiving present playing cards to signal petitions at field shops within the space and people names later appeared on signed retainers though shoppers have been adamant they by no means signed up for a lawsuit. She accused the agency in her lawsuit of “offering present playing cards, cash items, and related incentives in alternate for signatures.”

The agency stated in a press release it will be inconceivable for somebody to imagine they have been signing a petition once they have been signing up for a lawsuit as a result of giant variety of paperwork required to come back on board.

“If somebody made that declare, we would definitely discontinue our companies at their request,” the agency stated.

A former DTLA case supervisor, who requested to stay nameless, fearing skilled repercussions, stated the alleged recruitment effort turned clear to him after he was assigned to name individuals from a listing he’d been offered of latest Chiquita Canyon shoppers and located a number of who believed that they had signed up for a petition, not a case.

“Lots of these individuals have been fully unaware of what they have been signing up for,” the previous case supervisor stated.

Surgical procedures and guarantees of ‘lottery cash’

Three former case managers, who labored as liaisons between shoppers and attorneys, described the identical modus operandi at DTLA: Join private harm shoppers, then get them to conform to surgical procedures.

The extra surgical procedures, they have been advised, the extra revenue, as it will make the case extra beneficial by permitting legal professionals to assert increased medical damages.

The case managers stated companions pushed surgical procedures and would give bonuses when shoppers went underneath the knife. Medical doctors — who stood to learn by having the ability to invoice for the procedures — would have items dropped off on the workplace, the ex-employees stated.

The agency stated any allegations of unethical practices have been the results of “disgruntled former workers … who’ve ulterior self-serving motives.”

The case managers reported getting $500 checks from the agency once they bought a consumer to conform to a surgical procedure — typically with the phrase “bonus” within the memo. The Occasions considered certainly one of these “bonus” checks, which the previous worker stated was for a consumer’s pores and skin graft.

In the event that they didn’t persuade their shoppers to get surgical procedures, the previous case managers stated they feared shedding their job. Yaghoubtil would ask case managers to ship him a listing of their surgical procedures on the finish of the month, in response to messages considered by The Occasions.

“Our sx numbers for the month of Could have been very low,” stated Yaghoubtil in a June 3 Groups message to 64 employees members, utilizing an abbreviation for surgical procedure. “Many have been unable to provide even a single process… this isn’t acceptable.”

“How are you going to go a whole month and never have a minimum of certainly one of your circumstances labored up?” he continued. “It doesn’t go un-noticed and might be letting go of those that are usually not attempting onerous sufficient.”

The agency stated in a press release that it doesn’t intrude with a consumer’s medical care choices.

“DTLA’s position is to advocate, inform, and assist with transparency, compassion, and respect at each stage of the method,” the agency stated.

Jacqueline McClelland, 60, stated she was assured “lottery cash” by a DTLA lawyer in July 2018 after she slipped in a puddle of oil in a Willowbrook purchasing plaza.

The insurer for the plaza referred to as her up and supplied her $1 million if she didn’t lawyer up, she stated. However she stated her DTLA lawyer promised they may get her way more — so long as she went to all of the medical doctors they really helpful. She turned the insurer down.

Her case settled for $350,000.

It was not even near sufficient to pay for the half-million in charges she stated she’d racked up, primarily from going to medical doctors. She stated she continues to be in excruciating again ache from her surgical procedure.

DTLA took 46% of the settlement and despatched the remainder of the cash to a decide to resolve how you can divvy between her and the 31 medical doctors, clinics and mortgage firms she owes, in response to a courtroom document filed on behalf of DTLA to find out the distribution. A volunteer at a Watts highschool, McClelland has spent a 12 months lawyerless in courtroom combating for any little bit of it she will be able to get.

“Is somebody serving to you?” requested Choose Gary Tanaka at a Dec. 17 listening to in his Torrance courtroom the place she had been showing with such regularity that the clerk is aware of her by first title.

“Nobody. Sorry, your honor, nobody has helped me in any respect,” stated McClelland, standing in a courtroom continuing she stated repeatedly she didn’t perceive. “Downtown LA Legislation simply gave me to the wolves.”

“I’d agree with that,” stated Scott Meehan, an lawyer representing one of many medical doctors combating her for her settlement cash.

DTLA stated it couldn’t touch upon privileged conversations with McClelland. The agency stated in a press release that every one medical suppliers had authentic liens that entitled them to cash from the consumer’s settlement, together with McClelland’s.

The Occasions discovered courtroom information for greater than 60 DTLA shoppers who had prices, usually medical payments, that ended up being greater than their settlement. In these circumstances, DTLA couldn’t persuade the medical doctors to scale back charges, and the lawyer would hand the remaining cash over to let the courtroom resolve how you can divvy it up amongst everybody who wanted to be paid.

However the legal professionals get their reduce — in some circumstances, greater than three-quarters of the settlement, in response to lawsuits filed on the agency’s behalf to find out who will get the remaining cash.

“Our shoppers solely pay for authorized charges and prices in the event that they win a lawsuit or get a settlement,” DTLA stated in a press release.

After he was overwhelmed by a Santa Monica safety guard, David Villatoro, a 33-year-old building employee, stated a DTLA lawyer advised him he might get half 1,000,000 straightforward, in all probability double that. However provided that he went to a litany of medical doctors’ appointments, together with a neck surgical procedure.

It might imply shedding his building job and happening incapacity. However he claims his lawyer stated the surgical procedure would make the case extra beneficial.

“That’s the place the massive bucks are available,” he recalled the lawyer saying.

The large bucks by no means got here.

As a substitute, months after the case settled, Villatoro bought an e mail telling him to not contact the agency anymore about his case. Attorneys had taken 58% of his settlement cash — about $72,000 — and he must go to courtroom to battle for a reduce of what was left together with the medical doctors.

He stated he nonetheless can’t flip his head absolutely to the proper.

“I’m simply so confused,” he stated. “I used to be so naive. It was my first time ever, ever, ever getting a lawyer.”

Laura Stephenson, a 57-year-old baker, was advised by her DTLA lawyer that her slip-and-fall in her Menifee cul-de-sac might internet tens of millions. However she would wish to do a shoulder surgical procedure.

She hesitated. It might imply an excessive amount of time away from her bakery and he or she wasn’t positive she wished to do it. The lawyer satisfied her by providing her a mortgage for $10,000, she stated.

Greater than 4 years after the autumn, she has obtained no cash and may’t absolutely transfer her arm. The agency took 77% of her $175,000 settlement, in response to a courtroom submitting to resolve how you can distribute the cash. The remainder went to the courtroom to distribute, and he or she continues to be combating to get a portion.

“I’m residing this nightmare,” stated Stephenson, certainly one of eight individuals The Occasions spoke with who stated they filed a criticism with the State Bar.

The agency stated all medical therapy was voluntary and ethics guidelines forestall sharing extra details about discussions with shoppers.

“DTLA doesn’t pressure anybody to obtain medical therapy they are not looking for,” the agency stated.

Uber, a standard goal of DTLA, sued the agency and one of many fundamental surgeons utilized by shoppers, Greg Khounganian, final summer season for racketeering, alleging the agency had “aspect agreements” with him to inflate medical payments for pointless procedures. Uber’s lawsuit alleged that many sufferers underwent an pointless spinal fusion that takes months to recuperate from with a view to get a bigger settlement.

In some circumstances, Uber alleged, Khounganian inflated the payments by as a lot as 640%. If the case didn’t accept a lot, the lawsuit acknowledged, Khounganian would conform to dramatically cut back their liens.

In an Instagram publish, DTLA referred to as the lawsuit a “calculated try by a billion-dollar company” to suppress authentic claims. An lawyer representing Khounganian stated the physician had a spotless skilled document and had by no means confronted any disciplinary motion.

“He’s assuredly a first-rate and extensively revered orthopedic surgeon,” Stephen Larson, an lawyer for Khounganian, stated in a press release. “Uber’s meritless lawsuit, we imagine, is a part of its nationwide political and lawfare marketing campaign to suppress legal responsibility for accidents brought on by Uber’s drivers.”

Khounganian sought to have Uber’s case in opposition to him dismissed, along with his attorneys calling it in a single courtroom submitting “a lawsuit designed purely for tabloid impact with no significant effort at substance.”

One individual, who noticed one other physician for a coronary heart valve situation that heightened the chance of problems, might not stroll for greater than 10 minutes after their surgical procedure, Uber alleged within the lawsuit.

DTLA shoppers stated the agency would typically insist on sending them to particular L.A. medical doctors even when they lived in a unique county, or, in some circumstances, a unique state.

Christy Strickland, who had a case over a fall that occurred whereas working for the supply app Instacart, stated the agency insisted L.A. medical doctors have been cheaper than these in Texas. So she stated they flew her in from Houston and as soon as gave her gasoline cash to drive, placing her up in a resort for 2 weeks to recuperate together with two of her youngsters.

These journey bills would whole greater than $10,000 — together with two $482 Uber rides, in response to a breakdown. She stated she was by no means advised these journey prices can be popping out of her cash.

“YOU AND YOUR DOCTOR suggested me to get these surgical procedures and I’ve advised you that I’m nonetheless in ache much more because the surgical procedure,” she emailed Yaghoubtil in July 2023. “Have you learnt the way it feels to get up within the morning and your again hurts so unhealthy all you are able to do is simply lay there till it subsides?”

In November, Yaghoubtil, talking on a podcast episode referred to as “Lawyering With Empathy,” emphasised his focus was by no means high-dollar verdicts. The well-being of shoppers, he stated, at all times got here earlier than revenue.

“We love a consumer,” he stated. “If we’ve got to, we’ll go down combating with them.”

Occasions employees author Christopher Buchanan contributed reporting.