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

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

An bold paralegal, Banna mentioned she embraced the function she had in empowering residents to tackle corporations suspected of polluting their neighborhoods.

Her bosses had 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 pattern in a number of the agency’s most profitable circumstances: Shoppers who claimed they had 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 deal with her complaints about “unlawful solicitation, in addition to misleading and unethical practices geared toward persuading people to develop into purchasers by way of misrepresentations.”

She accused the agency, which she left within the fall of 2024, of amassing plaintiffs by way of “practices that appeared designed to use weak 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 usually are not solely unsubstantiated, however false,” the agency mentioned in a press release. “We intend to struggle this within the court docket of legislation, the place the info will present that we function with unwavering integrity, prioritizing shopper 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 automotive crash victims right into a civil litigation powerhouse, submitting 1000’s of circumstances associated to the January wildfires and sexual abuse in authorities services. The agency filed almost 1 / 4 of the circumstances within the $4-billion intercourse abuse settlement permitted final spring by Los Angeles County — the most important of its sort in U.S. historical past.

However the meteoric rise has drawn scrutiny.

The Instances 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 had been informed to manufacture claims. The L.A. County district legal professional’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 Instances spoke to greater than 40 of the agency’s purchasers and 10 former staff, lots of whom described aggressive ways to usher in new purchasers and reap earnings stretching again years.

Greater than a dozen individuals represented by DTLA in private harm circumstances mentioned they had 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 precious. The extra medical procedures, they had been informed, the extra damages attorneys might declare.

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

DTLA mentioned in a press release it exists “to assist purchasers by way of a number of the most tough 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 selections are made solely by purchasers and their physicians.”

Banna mentioned in her lawsuit she “repeatedly complained” about how purchasers had been being solicited.

She mentioned in an interview she reported the primary paid landfill shopper 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 informed her the alleged funds could be investigated.

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

‘A extremely massive 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 motels.

Banna mentioned certainly one of her colleagues, an consumption coordinator, informed 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 informed The Instances, Johnson grew to become an more and more frequent 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 hearth. Like most former staff, the ex-workers requested anonymity, fearing skilled retaliation.

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

California legislation bans a apply referred to as capping, through which non-attorneys solicit purchasers 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 staff mentioned Johnson was liable for bringing in a lot of purchasers.

“He’s a extremely massive a part of the recruitment course of for Downtown LA,” mentioned Banna, who described how she was referred to 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 staff say he was a well-recognized face across the workplace.

He was shut with the companions and chummy with staff, handing out fortunate $2 payments to staff final vacation season, three former staff mentioned. Two mentioned 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 shopper checklist.

The Instances 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 Instances 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 line with 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.

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

The couple mentioned they had been beneath the impression they had 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 contributors to undergo,” mentioned Beagle. “He didn’t work for the legislation workplace.”

‘Inform her I obtained $ for her’

A number of purchasers informed The Instances they had been provided cash by DTLA companion Farid Yaghoubtil if they might discover individuals to enroll in lawsuits with the agency.

“He referred to as it an development, ” mentioned LaShelle Allison, 53, a former shopper 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 hire.”

California is likely one of the few states the place attorneys are allowed to mortgage purchasers cash.

The State Bar has a common rule that attorneys usually are not imagined to pay “private or enterprise bills.” The bar makes exceptions that embrace if the shopper 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 shopper, with reimbursement contingent on the result of the matter.

DTLA mentioned in a press release that it presents small loans to purchasers “in restricted conditions.”

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

Akeem Smith, 40, had DTLA sue on his behalf not less than 4 instances, twice for automotive crashes, as soon as after he was punched at an evening membership and once more over a buying cart mishap at Ceremony Assist.

Smith referred 10 potential purchasers to Yaghoubtil, almost all automotive crash victims, in line with textual content messages between the 2 males. In return, Smith mentioned, he was informed he’d be compensated, although he mentioned he was disenchanted to seek out he was by no means paid for the purchasers he referred.

As an alternative, 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 enroll in circumstances with DTLA however didn’t pay them. He informed some about cash Yaghoubtil was providing.

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

After The Instances 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 informed her was a lie” and to remind The Instances that he was nonetheless a shopper of the agency, in line with a message Smith shared.

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

In August, Smith made an ill-fated try to sue the agency, representing himself in a lawsuit accusing them of holding 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 earnings and, generally, shelter. In the summertime of 2022, Smith moved right into a downtown constructing the place he paid hire to Yaghoubtil’s uncle, in line with textual content messages between the 2 males. The handwritten lease, rife with misspellings, mentioned he might keep there till he “seatel his case whit Dawntow Legislation Group.”

Smith mentioned he made month-to-month journeys to select up checks from DTLA, which was offering him cash for his hire, payments, meals and automotive repairs, in line with 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 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 companion Daniel Azizi, 43. They met Salar Hendizadeh, 44, in elementary college, in line with an interview they did with a industrial actual property firm.

All attended Beverly Hills Excessive College collectively, yearbooks present.

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

Many consumers who spoke to The Instances mentioned that among the many companions, Yaghoubtil specifically vied onerous 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 in opposition to Yaghoubtil, accusing him of creating “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 change from his present legislation agency, in line with the request for a restraining order. Brighton later requested a decide to dismiss the case.

DTLA didn’t handle questions concerning the restraining order request.

The agency expanded rapidly, outgrowing 4 completely different workplaces 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 includes 1000’s of individuals suing over the identical factor — and housing legislation.

The trio moonlighted as landlords themselves, proudly owning an condo constructing throughout the road from their East Hollywood workplace. They had been sued by a number of models in 2023 and 2024 over dwelling circumstances, together with allegations of infestations of rats, vermin and cockroaches that tenants mentioned made their lives “a dwelling hell.” One of many circumstances settled for $2 million, in line with court docket information.

The companions had 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, through which the agency accused the operators of recklessly permitting nauseating odors.

Heather Stone mentioned she noticed representatives of DTLA searching for individuals for landfill circumstances exterior a Santa Clarita Walmart in 2024, certainly one of two residents who informed The Instances they noticed representatives on the retailer who seemed to be recruiting purchasers.

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 had 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 alternate for signatures.”

The agency mentioned in a press release it will be unimaginable for somebody to consider they had been signing a petition after they had been signing up for a lawsuit because of the giant variety of paperwork required to return on board.

“If somebody made that declare, we will surely 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 supplied of latest Chiquita Canyon purchasers and located a number of who believed they’d signed up for a petition, not a case.

“Quite a lot of these individuals had been fully unaware of what they had 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 harm purchasers, then get them to conform to surgical procedures.

The extra surgical procedures, they had been informed, the extra revenue, as it will make the case extra precious by permitting attorneys to assert greater medical damages.

The case managers mentioned companions pushed surgical procedures and would give bonuses when purchasers went beneath 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 had been the results of “disgruntled former staff … who’ve ulterior self-serving motives.”

The case managers reported getting $500 checks from the agency after they obtained a shopper to conform to a surgical procedure — typically with the phrase “bonus” within the memo. The Instances considered certainly one of these “bonus” checks, which the previous worker mentioned was for a shopper’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 dropping their job. Yaghoubtil would ask case managers to ship him a listing of their surgical procedures on the finish of the month, in line with messages considered by The Instances.

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

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

The agency mentioned in a press release that it doesn’t intrude with a shopper’s medical care selections.

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

Jacqueline McClelland, 60, mentioned she was assured “lottery cash” by a DTLA legal professional in July 2018 after she slipped in a puddle of oil in a Willowbrook buying plaza.

The insurer for the plaza referred to as her up and provided her $1 million if she didn’t lawyer up, she mentioned. However she mentioned her DTLA legal professional promised they might get her much 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 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 the right way to divvy between her and the 31 docs, clinics and mortgage corporations she owes, in line with a court docket file filed on behalf of DTLA to find out the distribution. A volunteer at a Watts highschool, McClelland has spent a 12 months 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 identify.

“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 might agree with that,” mentioned Scott Meehan, an legal professional 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 each one medical suppliers had legit liens that entitled them to cash from the shopper’s settlement, together with McClelland’s.

The Instances discovered court docket information for greater than 60 DTLA purchasers who had prices, sometimes 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 legal professional would hand the remaining cash over to let the court docket resolve the right way to divvy it up amongst everybody who wanted to be paid.

However the attorneys get their reduce — in some circumstances, greater than three-quarters of the settlement, in line with 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 building employee, mentioned a DTLA legal professional informed him he might get half 1,000,000 simple, most likely double that. However provided that he went to a litany of docs’ appointments, together with a neck surgical procedure.

It will imply dropping his building job and occurring incapacity. However he claims his legal professional mentioned the surgical procedure would make the case extra precious.

“That’s the place the large bucks are available in,” he recalled the legal professional saying.

The massive bucks by no means got here.

As an alternative, months after the case settled, Villatoro obtained 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 struggle for a reduce of what was left together with the docs.

He mentioned he nonetheless can’t flip his head absolutely to the suitable.

“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 informed by her DTLA legal professional that her slip-and-fall in her Menifee cul-de-sac might internet hundreds of thousands. However she would want to do a shoulder surgical procedure.

She hesitated. It will imply an excessive amount of time away from her bakery and he or she wasn’t certain she needed to do it. The legal professional 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 absolutely transfer her arm. The agency took 77% of her $175,000 settlement, in line with a court docket submitting to resolve the right way to distribute the cash. The remainder went to the court docket to distribute, and he or she continues to be combating to get a portion.

“I’m dwelling this nightmare,” mentioned Stephenson, certainly one of eight individuals The Instances spoke with who mentioned they filed a grievance with the State Bar.

The agency mentioned all medical remedy was voluntary and ethics guidelines stop sharing extra details about discussions with purchasers.

“DTLA doesn’t drive anybody to obtain medical remedy they don’t want,” the agency mentioned.

Uber, a typical goal of DTLA, sued the agency and one of many most important surgeons utilized by purchasers, Greg Khounganian, final summer time for racketeering, alleging the agency had “facet 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 well 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 submit, DTLA referred to as the lawsuit a “calculated try by a billion-dollar company” to suppress legit claims. An legal professional 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 extensively revered orthopedic surgeon,” Stephen Larson, an legal professional 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 in opposition to 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 problems, might now not stroll for greater than 10 minutes after their surgical procedure, Uber alleged within the lawsuit.

DTLA purchasers mentioned the agency would typically insist on sending them to particular L.A. docs even when they lived in a distinct county, or, in some circumstances, a distinct 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 had been cheaper than these in Texas. So she mentioned they flew her in from Houston and as soon as gave her gasoline cash to drive, placing her up in a lodge 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 line with a breakdown. She mentioned she was by no means informed these journey prices could be popping out of her cash.

“YOU AND YOUR DOCTOR suggested me to get these surgical procedures and I’ve informed you that I’m nonetheless in ache much more for the reason that surgical procedure,” she emailed Yaghoubtil in July 2023. “Are you aware the way it feels to get up within the morning and your again hurts so dangerous 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 purchasers, he mentioned, at all times got here earlier than revenue.

“We love a shopper,” he mentioned. “If now we have to, we’ll go down combating with them.”

Instances employees author Christopher Buchanan contributed reporting.