Sereen Banna mentioned the companions of Downtown LA Legislation Group known 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 formidable paralegal, Banna mentioned she embraced the position she had in empowering residents to tackle corporations suspected of polluting their neighborhoods.
Her bosses have been proud, too, she mentioned. Banna, 28, recalled them saying she would make all of them billionaires sometime.
However in early 2024, Banna mentioned, she found a troubling development in a few of the agency’s most profitable circumstances: Shoppers who claimed they have been paid earlier than becoming a member of lawsuits.
On Dec. 16, Banna sued Downtown LA Legislation Group, often known as DTLA, stating the agency failed to deal with her complaints about “unlawful solicitation, in addition to misleading and unethical practices geared toward persuading people to develop into purchasers via misrepresentations.”
She accused the agency, which she left within the fall of 2024, of amassing plaintiffs via “practices that appeared designed to use susceptible people.”
DTLA known 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 mentioned in a press release. “We intend to combat this within the court docket of legislation, the place the info will present that we function with unwavering integrity, prioritizing consumer welfare.”
Banna’s lawsuit caps a tumultuous yr for DTLA. A partnership between three childhood pals, DTLA has grown from a small agency targeted on automotive 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 permitted final spring by Los Angeles County — the most important of its form in U.S. historical past.
However the meteoric rise has drawn scrutiny.
The Occasions reported within the fall that 9 of the agency’s purchasers who sued over intercourse abuse in L.A. County services mentioned recruiters paid them to file a lawsuit, together with 4 who mentioned they have been instructed 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 rapidly. The Occasions spoke to greater than 40 of the agency’s purchasers and 10 former workers, a lot of whom described aggressive techniques to usher in new purchasers and reap income stretching again years.
Greater than a dozen individuals represented by DTLA in private damage circumstances mentioned they have been recruited at a disaster level of their lives with guarantees of huge payouts and pressured into costly surgical procedures that attorneys mentioned would make their case extra useful. The extra medical procedures, they have been instructed, the extra damages attorneys may declare.
On the finish, some purchasers say, they have been left with a fraction of what they have been promised.
DTLA mentioned in a press release it exists “to help purchasers via a few 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 mentioned. “Medical care choices are made solely by purchasers and their physicians.”
Sereen Banna, a former DTLA paralegal, sued the agency on Dec. 16, alleging it didn’t take heed to her complaints of unethical solicitation. The agency has denied wrongdoing.
(Allen J. Schaben / Los Angeles Occasions)
Banna mentioned in her lawsuit she “repeatedly complained” about how purchasers have been being solicited.
She mentioned in an interview she reported the primary paid landfill consumer she was conscious of — a girl who acquired a $20 reward card — to her bosses in early 2024. In her lawsuit, she alleged “such conduct constitutes illegal and unethical habits for attorneys.”
She mentioned her boss instructed her the alleged funds can be investigated.
“At that time, I used to be reminded it was above my pay grade,” she mentioned.
‘A extremely huge a part of the recruitment course of’
Banna mentioned she resigned from DTLA in October 2024, across the time the agency started pursuing a brand new cohort of purchasers: human trafficking victims who’d been abused in lodges.
Banna mentioned one in all her colleagues, an consumption coordinator, instructed her a person named Kevin Johnson had paid one intercourse employee $20 to return into the workplace.
During the last two years, 5 ex-workers instructed The Occasions, Johnson grew to become an more and more widespread sight on the agency as he began shepherding in purchasers he’d discovered to sue over intercourse abuse within the juvenile halls and the Eaton fireplace. 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 residence. The agency is at present representing him in a lawsuit over a Mid-Metropolis automotive crash.
California legislation bans a follow often called capping, by which non-attorneys solicit purchasers to affix 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 mentioned Johnson was answerable for bringing in a lot of purchasers.
“He’s a very huge a part of the recruitment course of for Downtown LA,” mentioned Banna, who described how she was known as to do consumption with intercourse abuse purchasers after Johnson introduced them into the workplaces 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 mentioned. Two mentioned that at one level he had his personal swipe card, so he may come and go freely.
A digital path connects Johnson to DTLA’s consumer listing.
The Occasions discovered greater than a dozen pals 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 pals 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 residence.
“DTLA doesn’t pay purchasers to retain our companies or for referrals,” the agency mentioned in a press release.
Austin Beagle and Nevada Barker, former purchasers of DLTA, mentioned they have been paid to sue over alleged sexual abuse in L.A. County by a person named Kevin, whose final title they didn’t know. Beagle and Barker later had their lawsuit dismissed.
(Joe Garcia / For The Occasions)
Nevada Barker and Austin Beagle, two former DTLA purchasers, beforehand instructed 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 via photos as the person who paid her.
The couple mentioned they have been underneath the impression they have been being compensated to be actors in a film. The agency later requested the court docket to dismiss their lawsuits.
“He mentioned he labored for a referral service and the lawsuit wanted sufficient individuals to undergo,” mentioned Beagle. “He didn’t work for the legislation workplace.”
‘Inform her I acquired $ for her’
A number of purchasers instructed The Occasions they have been provided cash by DTLA associate Farid Yaghoubtil if they may discover individuals to join lawsuits with the agency.
“He known as it an development, ” mentioned LaShelle Allison, 53, a former consumer who mentioned she referred a number of automotive accident victims for Yaghoubtil. “Right here’s $250,’ ‘Right here’s $650,’ ‘Right here’s $500 for lease.”
California is without doubt one of the few states the place attorneys are allowed to mortgage purchasers cash.
The State Bar has a normal rule that attorneys are usually not presupposed 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 result of the matter.
DTLA mentioned in a press release that it gives small loans to purchasers “in restricted conditions.”
“The agency has provided small, interest-free micro-advances to assist with short-term wants like non permanent housing or primary bills, particularly so purchasers don’t really feel compelled to show to third-party lenders,” the agency mentioned. “These advances are solely 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 at the very least 4 occasions, twice for automotive crashes, as soon as after he was punched at an evening membership and once more over a procuring cart mishap at Ceremony Help.
Smith referred 10 potential purchasers to Yaghoubtil, practically all automotive crash victims, in response to textual content messages between the 2 males. In return, Smith mentioned, he was instructed he’d be compensated, although he mentioned he was disillusioned to search out he was by no means paid for the purchasers he referred.
As a substitute, Smith mentioned he acquired month-to-month advances of about $2,000 based mostly on potential settlements the agency was anticipating in his circumstances.
Smith mentioned he would encourage purchasers to join circumstances with DTLA however didn’t pay them. He instructed some about cash Yaghoubtil was providing.
“Inform her I acquired $ for her,” Yaghoubtil texted Aug. 9, 2022, relating to a girl who Smith mentioned had been in an accident and was contemplating not shifting ahead with the agency. “Get her again for me.”
Akeem Smith stands in entrance of the previous DTLA workplace in East Hollywood.
(Ronaldo Bolanos / Los Angeles Occasions)
After The Occasions reached out to DTLA looking for touch upon the allegations made by Smith, Yaghoubtil texted Smith asking him to inform the reporter that “every little thing you instructed 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 protecting an excessive amount of of his settlement cash. He requested for the case to be dismissed a month later.
Smith mentioned he grew to become depending on the agency for revenue and, generally, shelter. In the summertime of 2022, Smith moved right into a downtown constructing the place he paid lease to Yaghoubtil’s uncle, in response to textual content messages between the 2 males. The handwritten lease, rife with misspellings, mentioned he may keep there till he “seatel his case whit Dawntow Legislation Group.”
Smith mentioned he made month-to-month journeys to choose up checks from DTLA, which was offering him cash for his lease, payments, meals and automotive repairs, in response to mortgage statements and textual content messages between the 2 males.
Smith mentioned he flitted out and in of homelessness throughout that point — his first time ever with out secure housing.
“After I met you I had my very own every little thing,” Smith texted Yaghoubtil July 18, 2022 “Now I don’t even have garments.”
Listed in Smith’s cellphone as “Farid Ferrari,” Yaghoubtil replied, “What occurred to the cash you bought?”
Landlords, landfills and ‘incentives in change for signatures’
Downtown LA Legislation Group, based in 2016, is run by three longtime pals.
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 business actual property firm.
All attended Beverly Hills Excessive College collectively, yearbooks present.
Hendizadeh left the agency in October, in response to a letter despatched to workers this month. The word didn’t clarify why however mentioned Hendizadeh “can’t be conducting any agency associated enterprise.” He didn’t reply to an inquiry from The Occasions.
Many purchasers who spoke to The Occasions mentioned that among the many companions, Yaghoubtil specifically vied exhausting to get their enterprise.
In January 2019, William Brighton, who was within the VA hospital recovering from a automotive accident, requested a decide for a restraining order towards Yaghoubtil, accusing him of constructing “quite a few visits on the hospital to coerce (and bribe) me to retain them as counsel.”
He mentioned Yaghoubtil provided him $1,000 to modify from his present legislation 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 rapidly, outgrowing 4 totally different workplaces earlier than touchdown this yr in a 52,000-square-foot headquarters within the Arts District. They moved past their bread-and-butter fare of private damage, including departments for mass torts — circumstances that includes hundreds of individuals suing over the identical factor — and housing legislation.
An empty plot of land the place the DTLA companions used to personal an residence constructing throughout the road from their East Hollywood workplace. A number of tenants sued the companions for residing situations and the constructing is now demolished.
(Ronaldo Bolanos / Los Angeles Occasions)
The trio moonlighted as landlords themselves, proudly owning an residence 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 mentioned made their lives “a residing hell.” One of many circumstances settled for $2 million, in response to court docket data.
The companions have been charged in October 2024 with a misdemeanor for failing to take care of 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, by which the agency accused the operators of recklessly permitting nauseating odors.
Heather Stone mentioned she noticed representatives of DTLA on the lookout for individuals for landfill circumstances outdoors a Santa Clarita Walmart in 2024, one in all two residents who instructed The Occasions they noticed representatives on the retailer who gave the impression to be recruiting purchasers.
Castaic’s Chiquita Canyon Landfill, which residents say emits noxious odors, is the topic of a flood of lawsuits introduced by DTLA.
(Allen J. Schaben / Los Angeles Occasions)
Banna mentioned in an interview that she later discovered some purchasers for the landfill circumstances had been receiving reward playing cards to signal petitions at field shops within the space and people names later appeared on signed retainers although purchasers have been adamant they by no means signed up for a lawsuit. She accused the agency in her lawsuit of “offering reward playing cards, cash presents, and comparable incentives in change for signatures.”
The agency mentioned in a press release it might be unattainable for somebody to consider they have been signing a petition after they have been signing up for a lawsuit as a result of massive variety of paperwork required to return on board.
“If somebody made that declare, we would definitely discontinue our companies at their request,” the agency mentioned.
A former DTLA case supervisor, who requested to stay nameless, fearing skilled repercussions, mentioned the alleged recruitment effort grew to become clear to him after he was assigned to name individuals from a listing he’d been offered of recent Chiquita Canyon purchasers 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 mentioned.
Surgical procedures and guarantees of ‘lottery cash’
Three former case managers, who labored as liaisons between purchasers and attorneys, described the identical modus operandi at DTLA: Join private damage purchasers, then get them to conform to surgical procedures.
The extra surgical procedures, they have been instructed, the extra revenue, as it might make the case extra useful by permitting attorneys to assert larger medical damages.
The case managers mentioned companions pushed surgical procedures and would give bonuses when purchasers went underneath the knife. Docs — who stood to learn by having the ability to invoice for the procedures — would have presents dropped off on the workplace, the ex-employees mentioned.
The agency mentioned 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 after they acquired a consumer to conform to a surgical procedure — usually with the phrase “bonus” within the memo. The Occasions seen one in all these “bonus” checks, which the previous worker mentioned was for a consumer’s pores and skin graft.
In the event that they didn’t persuade their purchasers to get surgical procedures, the previous case managers mentioned 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 seen by The Occasions.
“Our sx numbers for the month of Could have been very low,” mentioned Yaghoubtil in a June 3 Groups message to 64 workers members, utilizing an abbreviation for surgical procedure. “Many have been unable to supply even a single process… this isn’t acceptable.”
“How are you going to go a whole month and never have at the very least one in all your circumstances labored up?” he continued. “It doesn’t go un-noticed and can be letting go of those that are usually not attempting exhausting sufficient.”
The agency mentioned in a press release that it doesn’t intrude with a consumer’s medical care choices.
“DTLA’s position is to advocate, inform, and help with transparency, compassion, and respect at each stage of the method,” the agency mentioned.
DTLA just lately moved into a brand new workplace on the former Fortunate Model headquarters within the Arts District of Los Angeles.
(Myung J. Chun / Los Angeles Occasions)
Jacqueline McClelland, 60, mentioned she was assured “lottery cash” by a DTLA lawyer in July 2018 after she slipped in a puddle of oil in a Willowbrook procuring plaza.
The insurer for the plaza known as her up and provided her $1 million if she didn’t lawyer up, she mentioned. However she mentioned her DTLA lawyer promised they may get her way more — so long as she went to all of the docs they really useful. 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 mentioned she’d racked up, primarily from going to docs. She mentioned she remains 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 find out how to divvy between her and the 31 docs, clinics and mortgage corporations she owes, in response to a court docket file filed on behalf of DTLA to find out the distribution. A volunteer at a Watts highschool, McClelland has spent a yr lawyerless in court docket 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,” mentioned McClelland, standing in a court docket continuing she mentioned repeatedly she didn’t perceive. “Downtown LA Legislation simply gave me to the wolves.”
“I’d agree with that,” mentioned Scott Meehan, an lawyer representing one of many docs combating her for her settlement cash.
DTLA mentioned it couldn’t touch upon privileged conversations with McClelland. The agency mentioned in a press release that every one medical suppliers had reliable liens that entitled them to cash from the consumer’s settlement, together with McClelland’s.
Jacqueline McClelland, a former consumer of DTLA, stands outdoors Los Angeles Superior Courtroom in Torrance on Dec. 17 forward of her court docket listening to.
(Myung J. Chun / Los Angeles Occasions)
The Occasions discovered court docket data for greater than 60 DTLA purchasers who had prices, usually medical payments, that ended up being greater than their settlement. In these circumstances, DTLA couldn’t persuade the docs to cut back charges, and the lawyer would hand the remaining cash over to let the court docket resolve find out how to divvy it up amongst everybody who wanted to be paid.
However the attorneys get their minimize — 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 purchasers solely pay for authorized charges and prices in the event that they win a lawsuit or get a settlement,” DTLA mentioned in a press release.
After he was overwhelmed by a Santa Monica safety guard, David Villatoro, a 33-year-old development employee, mentioned a DTLA lawyer instructed him he may get half 1,000,000 simple, in all probability double that. However provided that he went to a litany of docs’ appointments, together with a neck surgical procedure.
It might imply shedding his development job and occurring incapacity. However he claims his lawyer mentioned the surgical procedure would make the case extra useful.
“That’s the place the massive bucks are available in,” he recalled the lawyer saying.
The massive bucks by no means got here.
As a substitute, months after the case settled, Villatoro acquired 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 court docket to combat for a minimize of what was left together with the docs.
He mentioned he nonetheless can’t flip his head totally to the proper.
“I’m simply so confused,” he mentioned. “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 instructed by her DTLA lawyer that her slip-and-fall in her Menifee cul-de-sac may internet hundreds of thousands. However she would want 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 certain she wished to do it. The lawyer satisfied her by providing her a mortgage for $10,000, she mentioned.
Greater than 4 years after the autumn, she has acquired no cash and might’t totally transfer her arm. The agency took 77% of her $175,000 settlement, in response to a court docket submitting to resolve find out how to distribute the cash. The remaining went to the court docket to distribute, and he or she remains to be combating to get a portion.
“I’m residing this nightmare,” mentioned Stephenson, one in all eight individuals The Occasions spoke with who mentioned they filed a grievance with the State Bar.
The agency mentioned all medical remedy was voluntary and ethics guidelines forestall sharing extra details about discussions with purchasers.
“DTLA doesn’t pressure anybody to obtain medical remedy they are not looking for,” the agency mentioned.
Uber, a typical goal of DTLA, sued the agency and one of many essential surgeons utilized by purchasers, Greg Khounganian, final summer time 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 get better from to be able 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 known as the lawsuit a “calculated try by a billion-dollar company” to suppress reliable claims. An lawyer representing Khounganian mentioned the physician had a spotless skilled file and had by no means confronted any disciplinary motion.
“He’s assuredly a first-rate and broadly revered orthopedic surgeon,” Stephen Larson, an lawyer for Khounganian, mentioned in a press release. “Uber’s meritless lawsuit, we consider, 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 towards him dismissed, together with his attorneys calling it in a single court docket 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 issues, may now not stroll for greater than 10 minutes after their surgical procedure, Uber alleged within the lawsuit.
DTLA purchasers mentioned the agency would usually insist on sending them to particular L.A. docs even when they lived in a special county, or, in some circumstances, a special state.
Christy Strickland, who had a case over a fall that occurred whereas working for the supply app Instacart, mentioned the agency insisted L.A. docs have been cheaper than these in Texas. So she mentioned they flew her in from Houston and as soon as gave her fuel cash to drive, placing her up in a resort for 2 weeks to recuperate together with two of her kids.
These journey bills would complete greater than $10,000 — together with two $482 Uber rides, in response to a breakdown. She mentioned she was by no means instructed these journey prices can be popping out of her cash.
“YOU AND YOUR DOCTOR suggested me to get these surgical procedures and I’ve instructed you that I’m nonetheless in ache much more for the reason that 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 known as “Lawyering With Empathy,” emphasised his focus was by no means high-dollar verdicts. The well-being of purchasers, he mentioned, at all times got here earlier than revenue.
“We love a consumer,” he mentioned. “If we’ve to, we’ll go down combating with them.”
Occasions workers author Christopher Buchanan contributed reporting.
